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Gold Price Forecast – Gold Continues to See Choppy Behavior

By:
Christopher Lewis
Published: Jul 9, 2024, 12:41 GMT+00:00

The gold market continues to see a lot of noise, as we are hanging about in the middle of a large consolidation area. Because of this, the market will more than likely be a situation where the buyers will pick up any dips or value overall.

In this article:

Gold Markets Technical Analysis

Gold initially rallied during the trading session on Tuesday but gave back gains to show signs of hesitation. At this point, I think you’ve got a situation where we probably need to bounce around a bit and perhaps find value.

That means we may continue to drop from here, but I don’t necessarily like the idea of shorting gold as there are a plethora of reasons to be long of this market. The first one of course is that central banks out there are buying gold hand over fist and that means there’s a natural buyer in the market. After that, you have the very real possibility that we will continue to see interest rate cuts around the world. And then after that, we have more than enough geopolitical concerns to keep gold at least interesting.

When you look at the technical analysis, we have the 50-day EMA near the $2,320 level offering support, but more importantly, we have the $2,300 region as a major support level. The market has drifted sideways for a while after gaining the way it had previously, and that’s normal. That’s typical. We have to work off some of the momentum.

I have no interest in shorting gold anytime soon. And even if we did break down below the $2,300 level, the 200-day EMA would be your next potential support level based on that indicator and the fact that we have a cluster right around that region of roughly $2,200. So, with that being said, I do think gold goes higher eventually. It’s just kind of spinning its wheels right now, which makes a certain amount of sense considering we are in the midst of summer also.

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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