Gold Price Forecast – Gold Continues to Attract Attention

Christopher Lewis
Updated: Apr 16, 2024, 13:04 GMT+00:00

The gold markets continue to look strong overall, as we are at extreme highs. However, I will be looking for any chance to buy gold on a dip when I get a chance.

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Gold Markets Technical Analysis

Gold markets have gone back and forth as it looks like we are continuing to at least attempt a squeeze higher. All things being equal, this is a market that I think has to digest some of these gains. Will we get a pullback into it?

I certainly hope so because I would be more than willing to be a buyer. The RSI is starting to pull back towards the 70 level so that shows a potential return to normalcy. You can also make an argument for some type of weird divergence in the RSI, but regardless gold is a market that is very strong for multiple reasons and therefore I think it continues to go higher eventually.

A pullback all the way to the $2,200 level would be ideal, although I don’t know if we get it. Speaking of $2,200, the 50-day EMA sits just below there, just as the $2,150 support level does. Ultimately, it’s a buy on the dip market until interest rates get under control, central banks stop buying gold, and of course geopolitical tensions calm down, which I don’t know that any of that is happening any time soon, so it remains bullish.

I have no interest in shorting this market. You could tell me that it’s dropping $200 tomorrow and I don’t know that I would take that trade. On the other hand, I am very interested in picking up gold after it falls so we’ll have to wait and see how things play out, but a little overstretched at the moment.

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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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