Gold Price Forecast – Gold Continues to Look For a Base

Gold Markets Technical Analysis

Gold markets have pulled back just a little bit during the early hours on Tuesday, but we continue to consolidate after that massive sell-off last week. At this point, it does make a certain amount of sense that there are value hunters coming back into the market. And the fact that we broke above a significant inverted hammer from the end of last week does suggest that we go higher.

That being said, we’re in an upward trend anyway, so why would you fight it? Yes, it’s been pretty brutal over the last week and a half or so, but that only offers value unless the absolute trend has changed, and I just don’t see that right now. And in fact, if the recent pullback holds, we will have a higher low anyway.

The 50-day EMA is down at the $2,300 level and I think that is the bottom of the overall trading range, assuming that we even fall that far. On the upside we have the $2,400 level, which we have broken but probably offers a little bit of psychology, so one would have to think there’ll be a reaction, but really at this point in time I still believe that gold goes looking to the $2,500

In general, I think this is a scenario that continues to favor the upside. Although I recognize we will get the occasional pullback. Those pullbacks should be thought of as opportunities to pick up cheap ounces of gold going forward as the geopolitical concerns, the massive amount of debt around the world and a whole litany of other things should continue to drive the gold markets much higher.

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