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Gold Price Forecast – Gold Continues to Look Positive Overall

By:
Christopher Lewis
Published: Jul 10, 2024, 12:54 GMT+00:00

The gold market looks likely to be positive overall, and I think that at this point in time the market is waiting for the crucial CPI and PPI numbers in the US.

In this article:

Gold Markets Technical Analysis

The gold markets rallied in the early hours on Wednesday as we continue to see overall upward pressure. And when you look at the longer term chart, you have to assume that the recent consolidation will eventually lead to continuation. This would make quite a bit of sense, considering that the gold market had shot straight up in the air in the early part of the year, and there are a whole plethora of reasons to think that gold will continue to go higher.

The first one, of course, is the simple fact, that central banks around the world are paying close attention to the gold supplies and buying into it. If we can bring about the $2,425 level, then I think gold starts to take off towards the $2,500 level. I do think that the next couple of days could be big for gold as well, because the Consumer Price Index and the Producers Price Index figures will give us an idea as to what the Federal Reserve may be doing.

The market has been very noisy along the way, but there has been a certain amount of resiliency near the $2,300 that you cannot deny. It is because of this that if we get some type of knee jerk reaction to the downside, I am more than willing to step in and start buying gold, as I believe that not only the central bank buying will push it higher, but the inflation also coming down could because it could signify that perhaps the Fed is getting ready to cut. And then beyond that, you have to think about the geopolitical concerns out there and there are plenty of them. Gold should continue to be bullish longer term.

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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