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Gold Price Forecast – Gold Continues to See a Lot of Support

By:
Christopher Lewis
Published: May 30, 2024, 12:40 GMT+00:00

The gold market continues to see a lot of noise at the moment, but more importantly, is seeing buyers coming into the market to defend the overall uptrend. Because of this, you should probably pay attention to the way the gold markets are behaving.

In this article:

Gold Markets Technical Analysis

Gold had initially pulled back just a bit during the trading session on Thursday only to turn around and show signs of life. By doing so it looks like the market is basically hanging around trying to sort out whether or not there are buyers underneath that we can take advantage of.

The 50 day EMA sits just above the crucial $2,300 level, which of course is a large round psychologically significant figure and an area where we’ve seen action added previously. So, it makes a certain amount of sense that we would see a lot of support underneath. The longer term trend certainly favors the upside, and I don’t think that changes anytime soon. So, with this, I am a buyer overall.

If we can break above the $2400 level, then I really think gold starts to take off at that point. Eventually, I do expect to see that as geopolitical tensions around the world continue to cause issues and of course governments continue to borrow at massive amounts of size. The United States of course being the main culprit here.

With that being the case, I do prefer gold over the longer term, but I recognize that we are probably going to see a lot of noise in the process of trying to form some type of short-term bottom that we can bounce from. If we were to break down below the $2,270 level, then we could drop down to the $2,200 level, but right now that seems to be the least likely scenario.

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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