Gold Price Forecast – Gold Continues to Look Strong

Gold Markets Technical Analysis

The gold market rallied again during the early hours on Tuesday as we continued to stretch even higher. That being said, this is a market that I think you can’t chase anymore, at least not at the moment. Now that doesn’t necessarily mean that you should be shorting the market because it is very strong, but it desperately needs some type of pullback. The market is currently dancing around the $2,350 level. Underneath we have the 50-day EMA sitting near the $2,150 level and is rising.

All things being equal, there is a zone of support just above there that I think the market will eventually pull back to test the Relative Strength Index is currently in the overbought condition and I think at this point in time, it’s only a matter of time before we get that pullback. Perhaps it will be the consumer price index numbers coming out on Wednesday that caused the pullback, but in the longer term, I don’t know that it changes much other than it gives you a buying opportunity. With that being said, I do think that we are going higher, and I do think that given enough time, we could probably go looking to the $2,500 level.

The $2,500 level is a large round number that a lot of people will be aiming for. Underneath, I believe that the $2,075 level is the bottom of the entire trend. So, if we were to break down below there, then I think the trend will have changed. I don’t see that happening, and I believe there’s plenty of fundamental reasons for gold to continue to go higher, such as geopolitical concerns, the interest rate markets and of course, the fact that the United States just keeps printing more and more debt. So, with that being the case, I think let’s take advantage of pullbacks if and when they show up.

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