Gold Price Forecast – Gold Continues to Look Explosive

Gold Markets Technical Analysis

Gold rallied significantly during the course of the trading session here on Thursday in the early hours as we continue to see a lot of upward pressure at this point. There are a lot of questions as to whether or not we can continue this momentum and so far, it certainly looks as if we are going to remain bullish. But I also recognize that we are so overdone at this point in time, that it is only a matter of time before we pull back. I think we need to look at this as to whether or not it’s going to offer value in chasing the market all the way up here is is actually pretty reckless, although there are plenty of people willing to do that.

If we can pull back anywhere near $2100 or perhaps even the $2,075, then I like the idea of buying it and bouncing higher, finding some type of value. At this point I have $2,175 as a potential resistance barrier based upon a measured move, but nothing more than that. Interest rates will have a major influence on what happens with the gold market and of course with the jobs number coming out on Friday, there’s a very high likelihood that the bond markets go crazy, which will have a major influence on gold.

Either way, at this point in time, you are probably looking for some type of swing low that you can take advantage of. You just simply cannot chase a market that has gone straight up the way gold has 6%, which is a pretty big move for gold and just a handful of bars. I do think that you will be rewarded if you’re patient enough, but the question is, are you patient enough? If you are, I think you will get an opportunity to find gold at a much better price than we presently see on the chart right now. Either way, it’s obvious that you cannot short this market anytime soon.

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