Gold Price Predictions Video for 06.06.23
Gold Market Technical Analysis
Gold continues to be very noisy, initially dipping during the trading session on Monday, only to find buyers just above the $1960 level yet again. Because of this, I think it’s probably only a matter of time before we see value hunters banking and trying to pick up the dip. If we were to break down below the $1950 level, then we could see this market attempt to go down to the 61.8% Fibonacci level, an area that obviously would attract a lot of attention. After that, it opens up a move down to the 200-Day EMA, currently sitting just below the $1900 level.
All things being equal, it does make a certain amount of sense that gold continues to shine, as traders are trying to protect the wealth at this point. There are a lot of crosswinds right now that could cause issues, so I do think that gold will eventually end up taking off yet again. In times of uncertainty, it provides the stability for portfolios that so many people are looking for right now. If we can break above the $2000 level, I suspect at that point we would have a resumption of the massive uptrend, allowing gold to reach the $2100 region again, an area that had been significant resistance.
Ultimately, I don’t have any interest in selling gold, at least not at the moment. There are so many concerns out there that it does make a lot of sense that you would see gold be a favored vehicle for wealth preservation at the moment, but I also recognize that it is probably only a matter of time before rallies get pullbacks, as there are so many different moving pieces at the same time. If interest rates start to spike again, that could work against gold, and right now that would be the one concern I would have. That being said, I don’t think it’s a major issue at the moment, therefore I continue to look at these little bits as buying opportunities, and I suspect that a lot of bigger traders are out there building positions right now, in order to take advantage of a longer-term trend.
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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