Gold Price Forecast – Gold Continues to Look Strong

Gold Markets Technical Analysis

The gold market has been back and forth during the early hours on Friday, as we continue to try to sort out whether or not we can continue to go higher. I think at this point in time, it’s obvious that we are in an uptrend and that has remained intact for a while.

The 50-day EMA underneath is an indicator that a lot of people have been following and it has reinforced the trend line that has been so important for some time. At this point, a short-term pullback is more likely than not going to be a buying opportunity, especially near the $2,400 level. And of course, that 50-day EMA that we had previously been testing back and forth.

To the upside, we have the $2,480 level offering resistance, but I think it’s probably only a matter of time before we break through there and go to the $2,500 level. Keep in mind that central banks around the world continue to buy gold, and of course, interest rates are falling and that makes the idea of gold much more attractive.

So, with all that being said, and not to mention that we have plenty of geopolitical risks, I think gold continues to be a buy-on-the-dip scenario that will eventually break higher. Ultimately, I don’t really have a situation where I am willing to short this market, as there is so much out there that could push people into this market.

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