GLD

Gold Price Forecast – Gold Markets Have Wild Ride At The Open

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Gold Price Predictions Video for 05.12.23

Gold Market Technical Analysis

Gold markets have been on a wild ride on Monday, gaining well over $100 almost immediately, only to turn around and fail completely. It’s obvious that the market had blown through some type of stoploss orders and could not find liquidity above. At this point, there are questions as to who would be left to sell gold, but it’s obvious that the market favors the upside in general. Short-term pullbacks should find a certain amount of support underneath, especially near the $2050 level, but I don’t know exactly how this plays out quite yet, because the move was so erratic.

Interest rates dropping in America certainly help this market, but at the same time you can make an argument that the markets are overdone. At this point, traders are trying to price in the idea that the Federal Reserve is going to start cutting interest rates by March, which might be a bit aggressive, but it certainly makes sense that gold would be a beneficiary of lower interest rates. Furthermore, you have to keep in mind that the market has been pricing this in for a while, so you certainly would have to think that the market is probably going to try to find some type of momentum to the upside given enough time, as gold is one of the best ways to run away from that.

That being said, it is a bit concerning that the market has turned around the way it has almost immediately, so then you have to ask the question of whether or not there is going to be enough follow-through? Because of this, I still believe in the upside, but I don’t necessarily feel the need to throw a ton of money at this market right now, because the spike that we had seen is something that is completely abnormal. It’s also worth noting that it happened almost right away in Asian trading, perhaps when there is no real volume, so only so much can be read into what we have seen, other than perhaps the fact that the market is still bullish.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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