Gold Price Forecast – Gold Continues to Look Upwards

Gold Markets Technical Analysis

Gold markets fell slightly during the trading session in the early hours on Wednesday, but at this point in time it’s all about waiting on the Federal Reserve and whether or not they are going to move the markets. Ultimately, I do think that this is a market that you need to pay close attention to one specific level underneath.

That’s assuming you get a pullback and that would be the $2075 level. If we pull back to this area, I’m an instant buyer. On the other hand, we could just go a little bit higher and try to reach the highs again, which wouldn’t be overly surprising. We are in the midst of a huge run to the upside. That being said, this is a scenario where I think you will see traders continue to look for value.

And you can even make an argument that we are in the midst of forming some type of bullish pennant. That of course is a strong sign. If we can take out the highs from a couple of weeks ago, then it looks like the market will almost certainly go running towards the $2,250 level. There are plenty of reasons to think that gold will eventually go higher, not the least of which of course is going to be central bank buying, but we also have to wonder how long it’s going to be before the central banks start to cut rates again.

At this point, it certainly looks like we are going to get those rate cuts later in the year, and if that is the case, it should continue to drive this market to the upside. I like the idea of buying any bits and pieces of value that we get the opportunity to do so.

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