Gold Price Forecast – Gold Continues to See Buyers on Dips

Christopher Lewis
Published: May 23, 2024, 12:47 GMT+00:00

The gold market fell a bit in the early hours of the Thursday session, and as a result, value hunters came out to pick the market up yet again.

In this article:

Gold Markets Technical Analysis

Gold has initially fell during the trading session on Thursday but then turned around to show signs of life again. The market has sold off rather drastically over the last couple of days, but we are very obviously in a bullish market so there is no real reason to think that this market was going to completely collapse even if we kept falling from here, the 50 day EMA sits right at the $2,300 level, and I think that would end up being a major floor in the market. If we can turn around and take out the $2,400 level to the upside, then we really could start to take off again. Either way, I still think this is a situation where we are buyers of dips going forward.

The market continues to enjoy central bank buying with it coming out and supporting it. But we also have a lot of geopolitics that come into the picture and could continue to have people looking for safety. Beyond that, we also have central banks printing hand over fist. Well, specifically we have governments borrowing hand over fist, which can deteriorate the value of fiat currency. For example, the United States is printing or borrowing a trillion US dollars every 90 days.

Well, that of course means that people want hard assets. I don’t see this changing, at least not in the short term. So, gold should continue to appreciate in value. Going forward, short-term pullbacks will continue to be looked at as potential buying opportunities in what has been one of the stronger markets that I follow.

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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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