Gold Price Forecast – Gold Attempting to Recover

Christopher Lewis
Published: May 24, 2024, 13:11 GMT+00:00

The gold market rallied slightly in the early hours of Friday, as the recovery looks to begin. Can it hold? Only time will tell, but at the end of the day, this is a market that remains very much in an uptrend.

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Gold Markets Technical Analysis

The gold market rallied a bit during the trading session on Friday as it continues to see a lot of noisy behavior. We have sold off quite viciously over the last couple of days, but now it looks like we are trying to turn things around, which of course would make a certain amount of sense as we’re in an uptrend.

Unless you believe that suddenly the trend in gold changes, you would expect sooner or later value hunters that come back into the market. If that’s the case in this market, then it does make a lot of sense that we would attempt to get back towards the $2,400 level. This is a market that is notorious for its volatility anyway, so none of this should be a huge surprise. With that being said, I am bullish of gold, but I also recognize that you need to be a bit cautious.

It’s probably worth noting that Monday is Memorial Day in the United States, so that will obviously have a major influence on liquidity, but nonetheless, if nothing else, when I look at this chart, I don’t see a reason to start shorting gold. The 2,300 level underneath is massive support right along with the 50-day EMA, so I think that all comes into the picture as well. Ultimately, I do think this is a market that will take off to the upside given geopolitical issues, maybe central bank buying or just the fact that countries like the United States are borrowing a trillion dollars every 90 days. Sooner or later, this matters. So with that being the case, I remain bullish.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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