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Gold Price Forecast – Gold Continues to Look Supported

By:
Christopher Lewis
Updated: Apr 25, 2024, 13:46 GMT+00:00

The gold market has stabilized over the past few days, and Thursday continues this pattern. Ultimately, this is a market that looks bullish, but volatile as usual.

In this article:

Gold Markets Technical Analysis

The gold market initially pulled back just a bit during the Thursday session, only to find plenty of support right above the crucial $2,300 level. This is an area that I think a lot of people will be paying close attention to, as it is a large round figure.

And of course, an area where there’s probably a lot of options played. The fact that we rallied does suggest that perhaps we are trying to do everything we can to build up a little bit of pressure to take off to the upside. Keep in mind, this is a market that has been very bullish until very recently, and therefore you have to look at it through the prism of whether or not it is actually going to build up enough momentum and take off to the upside to get overly excited.

At this point, if we take out the top of the inverted hammer from the Wednesday session, then I think that’s a good sign. That will probably go back towards the highs near the $2,400 level. Underneath, if we were to break down below the 2280 level, then I think you could have a run down to the 50 day EMA and possibly even as low as $2,200 in order to find more support.

Either way, I don’t have any interest in selling gold because, quite frankly, it’s a market that has too many things working for it. At the same time, central banks around the world continue to accumulate gold. Interest rates are more likely than not going to have to be cut sooner rather than later, and then, of course, there’s all kinds of geopolitical tension.

All of these point to higher gold prices. And at this point in time, every time the market pulls back, you have to assume that it’s offering value.

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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