Gold Price Forecast – Gold Continues to Look Strong But Ready For a Pullback

Gold Markets Technical Analysis

Gold markets have pulled back just a bit during the trading session on Thursday, but at this point in time, I think you have a situation where traders continue to look at this through the prism of we are a little overdone, but that doesn’t change the overall attitude of the market. The market has gone straight up in the air and therefore we need to take a little bit of a breather. It does make sense that we may do that heading into the jobs report on Friday, as that will cause a lot of volatility anyway. Underneath us we have the $2,200 level offering significant support as it was previous resistance. I don’t know if we get down to that level, but it is an area worth paying close attention to.

I don’t like the idea of the market going straight up in the air yet again, and therefore I think we have a situation where we just simply need to work away some of the froth, and I do think most traders are aware of this. Quite frankly, the $2,300 level looks to be a little bit of a barrier, and I do think that we get above there eventually, but not immediately. This pullback will be healthy if we get it and that of course is something you should be looking at buying into.

Longer term, the $2,500 level, I think is going to be like a magnet for price given enough time. But we will have to work off some of the excess froth between now and then, so I’m going to use any dip as an opportunity to pick up more gold. Keep in mind that the jobs number could send this down rather quickly. If that’s the case, you have to keep your cool and understand that you’re trying to buy gold on sale.

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