Gold Price Forecast – Gold Continues to See Bullish Pressures

Christopher Lewis
Updated: May 21, 2024, 13:53 GMT+00:00

The gold market continues to see a lot of upward pressure in general, and I suspect that will continue to be the case as we have a lot of reasons to think the economic outlook won’t change much.

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Gold Markets Technical Analysis

Gold initially pulled back just a bit during the trading session on Tuesday, reaching the $2,400 level before rallying again and taking off to the upside. Ultimately, this is a market that I think will eventually try to break out and perhaps take out the top of the shooting star from the previous session. Breaking above that would obviously be a very bullish sign, and could send more FOMO trading into the picture.

The $2,450 level has been a bit of resistance, and I think that gets taken out rather soon. In that environment, it opens up the door to the $2,500 level. An alternate scenario would be that we just go sideways, and if that’s the case, the $2,400 level should continue to be supported. If we were to break down below there, then we would just simply reenter the previous consolidation area, which has a massive amount of support underneath the $2,300 level where the 50 day EMA currently sits.

So, with all of this, I do like the idea of buying dips. And I do think that longer term geopolitics, central bank monetary policy, profligate spending from governments around the world, all will continue to push gold higher. At this point, I don’t really have a longer term target, as the market certainly has a lot to take into account, and of course we have the possibility of further escalation of tension in the Middle East that could really send gold soaring.

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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