Gold Forecast: Gold Markets Find Support Late in the Day – 20 February 2023

Gold markets initially fell during the trading session on Friday, but then turned around to show signs of life again as the 38.2% Fibonacci level has offered support, as it looks like we are trying to do everything we can in order to find our footing.Keep in mind that gold has sold off quite drastically as of late, but it is probably worth noting that the market is also at the 38.2% Fibonacci level, which of course typically attracts a certain amount of attention.That being said, the market has also seen a little bit of resistance in this area previously, so I think it’s more likely that we are going to see a lot of back and forth.

The 200-Day EMA is sitting near the $1800 level, so I do think that has a certain amount of importance attached to it. The 200-Day EMA will typically attract a lot of systems traders, and therefore a lot of longer-term “buy-and-hold” type of trading. If we were to break down below it, that opens up the possibility of a pretty significant pullback to the $1750 level. That being said, pay close attention to the $1900 level, because we formed a lot of inverted hammers in that area, so therefore I think a lot of people will be looking at that as potential resistance. Breaking above all of those would be an extraordinarily bullish sign, and therefore I think you have the possibility of a move to go back to the highs again if that does in fact happen. If it does, then I think gold will finally make a serious run toward the $2000 level.

That being said, you can see that we have broken down quite drastically from the high, showing 2 massive red candlesticks. The 2 massive candlesticks suggests that something changed in that area and moves like that very rarely happen in a vacuum. It doesn’t mean that we have to respect it, just that more likely than not it would cause a lot of noise. At this juncture, I think we’ve got a situation where we see quite a bit of volatility, but I don’t know if this is a complete recovery or not.

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