Gold Price Prediction – Gold Markets to Grind in a Channel

Tuesday’s trading session witnessed a modest rally in gold markets, which continue to grind along in a channel.

Tuesday’s trading session witnessed a modest recovery in the gold market, with prices pushing back above the $1800 threshold. By doing so, it appears that the market is attempting to determine whether it will continue its gradual rising trend or turn negative, which would result in individuals selling short. The 200-day exponential moving average (EMA) is below the 50-day EMA, which is about to cross above the 200-day EMA to form a “golden cross,” thus I believe it’s more likely than not that gold markets will continue to strengthen.

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This is a circumstance in which you have a substantial level of interest, and I do believe that gold will be used to secure wealth in the future, as the economy will almost likely contract. While interest rates remain up, a large number of individuals will wager that the gold markets will decline, despite the fact that this correlation has very definitely been severed. During the whole decade of the 1980s, both gold and the US dollar rose simultaneously.

If we were to break below the underlying moving averages, it is possible that the market may fall below $1720 or even $1700. Anything below that may be interpreted as a big breakdown, but I don’t believe that’s the most likely outcome. In fact, I expect the gold market will attempt to return to the $1875 level. Above that, the potential of a transfer to the $2000 level becomes possible.

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