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Gold Price Forecast – Gold Continues to Look Strong For Buyers

By:
Christopher Lewis
Published: Apr 1, 2024, 12:54 GMT+00:00

The gold markets continue to see a lot of buying on dips, and I think this will continue to be the case going forward.

In this article:

Gold Markets Technical Analysis

Gold markets gapped to the upside on Monday morning in Asia and took off straight up in the air. Since then, we’ve seen some selling. But at this point in time you also have to keep in mind that Europe was essentially closed down as it is Easter Monday.

So, as I head into the New York session and I take a look at this market, I suspect this is going to continue to be more buy on the dip type of behavior just waiting to happen. With this, I will drill down to short term charts and look for hammers or other such candlesticks that show signs of support and recovery to take advantage of cheap gold.

I have no interest in shorting gold. It is far too strong, and there are a whole litany of reasons to think that it’s going higher. The first one, of course, would be the fact that central banks around the world are going to be cutting rates. So that typically does well for gold. We also have geopolitical concerns, and that of course helps gold as well as it becomes a huge safety trade.

And then furthermore, we have central banks around the world buying gold. So that tells you that there’s a huge buyer in the market at all times regardless. So, there’s a certain amount of support built into this market. If we do pull back from here, and I do think that’s very possible, I suspect that somewhere around the $2,150 level, we will have a fairly hard floor in the market.

And the trend itself doesn’t even remotely change until we break down below the $2,075 level, which is almost $200 underneath where we are now. Again, I will use short term charts to time my entries, but I’m certainly looking at finding a little bit of value here.

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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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