Gold Price Forecast – Gold Waits for Jerome Powell

Gold Price Predictions Video for 28.08.23

Gold Market Technical Analysis

The gold market initially attempted a rally during Friday’s trading but later surrendered gains, showing uncertainty. This uncertainty could lead to a session with limited enthusiasm due to the impending Jackson Hole Symposium. Speeches by central bank figures like Jerome Powell and Christine Lagarde will guide market sentiment, eventually leading to a clear move.

After this event concludes, we might witness follow-through action. The current outlook suggests ongoing significant volatility. Crossing above the 50-Day Exponential Moving Average (EMA) could open the door to target the $2000 price level. Conversely, dropping below the 200-Day EMA might push the market toward the $1900 level. If there was a move like this, we could see a huge change in attitude overall.

In this scenario, a potential “double bottom” pattern is taking shape, hinting at future price action. Thursday’s candlestick pattern displayed an impulsive nature, indicating a possible market turnaround and upward movement. Overall, this market remains highly turbulent, necessitating careful consideration of position sizes. Corrections in this market tend to be rapid and forceful, often catching traders off guard.

Engaging effectively in this market involves waiting for momentum to build before taking larger positions. Until then, a cautious approach is advised. While the gold market could eventually receive a boost, the potential impact of Jerome Powell must not be underestimated. In fact, it might be the main driver of gold for the next few weeks, especially if he chooses to surprise the market with his tone and demeanor. However, there is a lot of liquidity out of the market at the moment, as a lot of bigger players are still away on holiday this time of year.

In summary, the recent behavior of the gold market involved an attempt at rallying followed by uncertainty. The upcoming Jackson Hole Symposium will define market dynamics, resolving the current indecision into a significant move. Post-symposium, opportunities for follow-through might arise amidst sustained volatility. Key moving averages suggest possible price targets. The emerging “double bottom” pattern and the recent candlestick’s impulsive nature provide further insight into the market’s direction. Given its turbulence, careful position sizing is critical. While upward momentum is foreseeable, the influence of Jerome Powell on market sentiment remains a crucial variable to monitor.

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