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Gold Price Forecast – Gold Continues to Look Bullish

By:
Christopher Lewis
Updated: Jun 21, 2024, 14:17 GMT+00:00

The Friday session has seen a lot of bullish pressure show up again in the gold markets. This is a market that will continue to seem bullish in the longer term, as there are a plethora of facts that will continue to push the market to the upside.

In this article:

Gold Markets Technical Analysis

The gold market looks bullish again in the early hours on Friday, as we continue to see buyers jumping into the market in order to take advantage of the overall trend. We had recently bounced from the 50 day EMA and perhaps even the $2,300 level. And at this point in time, it looks like we are going to try to reach the $2,400 level above.

The $2,400 level above is a large round psychologically significant figure that a lot of people pay close attention to, not only in the spot market, but also the options markets. If we can break above there, then the market is likely to continue to go towards the recent highs at the 2450 level. In general, this is a market that I think continues to see a lot of buy on the dip behavior, and that makes sense considering all of the geopolitical issues out there. Furthermore, central banks around the world continue to cut rates.

Quite frankly, gold is being used as a hedge against inflation. Central banks around the world are buying gold so that makes a big buyer in the market regardless. Underneath, the 2,280 level underneath is your floor but if we were to break down below there, then I think you could see about a 5% drop to reach the 200 day EMA. But right now, that looks less and less likely. With this, I think you can only look at this market through the lens of being bullish overall.

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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