Gold Price Forecast – Gold Continues to Look Like it Will Bounce

Christopher Lewis
Published: Apr 24, 2024, 13:13 GMT+00:00

The gold market was stable during the early hours on Wednesday, as the market continues to see a lot of value hunting and positioning from long-term investors.

In this article:

Gold Markets Technical Analysis

Gold has gone back and forth during the early hours on Wednesday, as the $2,300 level continues on for support. At this point, it looks like gold is trying to find its footing and therefore bounce again. After all, we had a nasty sell off a couple of days ago, but we’ve seen a turnaround during the session on Tuesday.

If we can break above the top of the hammer candlestick from the Tuesday session, then we could go looking to the $2,400 level. If we break down below the candlestick from the Tuesday session, then I think you’ve got a situation where the 50 day EMA or even the $2,200 level comes into the picture to start offering support. Longer term, I think we still continue higher, perhaps going to the $2,500 level.

Keep in mind that there is massive money printing about to happen again in the United States, and of course, there are plenty of geopolitical concerns. Central banks are more likely than not to have to cut rates sooner or later, and that is going to help gold as well. Think of it as both an inflation hedge and a way to hide during geopolitical uncertainty.

Beyond that, you just have to look at it through the prism of momentum. It has plenty of momentum, so there’s no reason to fight that. Either way, even if you don’t get involved in gold, the one thing you cannot do is short the market right now as the gold market could very well be one of the best performers this year. Quite frankly, it would take a lot of change to make this a market worth selling.

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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