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Gold Price Forecast – Gold Continues to Run Hot

By:
Christopher Lewis
Published: Apr 12, 2024, 13:29 GMT+00:00

The gold markets rallied yet again on Friday as the markets continue to run to safety, and of course the idea that geopolitics will continue to favor gold.

In this article:

Gold Markets Technical Analysis

Gold has rallied significantly during the trading session on Friday as we continue to see the markets go straight up in the air. At this point in time, it has become a little bit of a mania, I suppose, but really at this point you can’t sell in this market, it’s far too strong. As we approach the $2,400 level, we are most certainly overbought. But again it really doesn’t matter. This is simply chasing and momentum. But there are some fundamental reasons for this to happen. And after all, there’s a lot of concerns in the Middle East when it comes to geopolitics. There’s also the fact that nobody really knows what central banks are going to do.

And speaking of central banks, they are buyers of gold. So that’s probably something that should be kept in the back of your mind as well. With that being said, I remain very bullish, but I also would like to see a little bit of a pullback in order to find some value. After all, this is a market that has rallied rather extraordinarily aggressively over the last several weeks and probably needs to find more buyers.

A pullback all the way to the $2,200 level would be ideal, but I don’t know if that’s going to happen that way, as it would be pretty close to a 10% correction. The relative strength index is turning higher and is well above the 70 level again. So that obviously is a technical signal that perhaps, we don’t have that much further to go. But really, at this point in time, I don’t think you can count on technical analysis. This has just become a huge mania.

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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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