Stock Market

Gold Price Forecast – Gold Markets Continue to Hover at 38.2% Fibonacci Level


Gold Price Predictions Video for 21.02.23

Gold Market Technical Analysis

Gold markets have gone back and forth during the trading session on Monday, as we continue to see a lot of noisy behavior. Keep in mind though that it was Presidents’ Day in the United States, therefore it was limited electronic trading. Because of this, and the fact that we still managed to find buyers, I suspect that gold may be getting ready to take off again. If that is in fact going to be the case, then we will more likely than not challenge the 50-Day EMA sitting just above. Breaking above that opens up the possibility of the $1900 level being targeted, where we had seen a lot of selling pressure. Whether or not we can break above there is a completely different question, but it certainly would make an interesting target for buyers.

The 38.2% Fibonacci level has offered quite a bit of support, as we formed a nice hammer for the Friday session. That being said, if we were to break down below the hammer from Friday, it opens up the possibility of a move down to the 200-Day EMA, which is closer to the $1810 level. Underneath there, we have the 50% Fibonacci level which is basically at $1800 and will attract quite a bit of attention.

One thing that does have me a bit concerned is the fact that we sold off so drastically from the highs, but it’s also worth paying close attention to the US dollar because of course the negative correlation is still there, so we need to pay close attention. Ultimately, this is a situation where a lot of this will probably come down to what the US dollar does against multiple currencies. Keep in mind that we have seen a massive move higher in gold, so this pullback will look attractive for a lot of value investors as well.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire



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