Gold Price Forecast – Gold Continues to Consolidate

Gold Markets Technical Analysis

We are taking a look here at the gold market, which of course is bouncing around just above the 50-day EMA. The 50-day EMA is an indicator that a lot of people will pay attention to, and it certainly looks as if the last couple of days have confirmed this. After all, it seems like we can’t take off in one direction or the other, at least not very easily.

Underneath we have the crucial $2,000 level, an area that I think a lot of people will be paying attention to due to the fact that it is so resilient in the support that it gets. It extends down to the $1,980 level, and therefore I think it’s likely that we will continue to see more upward pressure than anything else. Simply put, there are plenty of factors out there that will continue to make gold attractive to a lot of traders.

Ultimately, if we do break to the upside, the $2060 level is an area that we could aim for. And then eventually the $2075 level. The $2075 level is an area that has previously been a hard ceiling in the market. And therefore, I think a lot of people will be paying close attention to it. Anything above there, then gold really starts to take off, perhaps more in a “buy-and-hold” type of scenario that a lot of people will acknowledge.

With gold, there’s all the usual factors such as interest rates, US dollar strength or weakness, and of course, geopolitical concerns. All things being equal, this is a market that continues to be buy on the dips and that’s exactly how we’ve seen it trade all week and for that matter, most of the year. I like the idea of finding cheap gold to protect part of my portfolio. I don’t necessarily want to go all in on gold, but I do think that it has a place in every portfolio. And I do think that we will stay in the same range that we have been in since basically November of last year.

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