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Gold Price Forecast – Gold Continues to See Noisy Bullish Pressures

By:
Christopher Lewis
Published: May 20, 2024, 12:33 GMT+00:00

The Iranian president crashing in a helicopter on Sunday had gold traders on edge, but this initial surge higher was just a continuation of what we had seen over the last several weeks. Gold remains noisy, but bullish as far as I can see.

In this article:

Gold Markets Technical Analysis

Gold has been pretty noisy during the trading session here on Monday, but it looks like we are just going to have to settle with volatility more than anything else. Ultimately, I think you’ve got a situation where we continue to see a lot of noisy behavior that is probably a feature, not a bug in this market. And therefore, unfortunately, we are going to have to deal with wild swings. We broke to a fresh new high only to turn around and sell off again later in the day. I certainly think to the upside is where you’re looking to trade this market.

The 2,400 level underneath should be massive support. But right now, this is a market that is adjusting to plenty of geopolitical concerns. Of course, the death of the Iranian president had people spooked at one point. But really nothing has come of that other than it appears it’s just a helicopter accident.

So, if that’s the case, then I think we may slow down a bit, but we still have the overall upward momentum and overall upward trend going. And I don’t really see what keeps this market from going to the $2,500 level before it is all said and done. After all, geopolitics is still pretty hot. And of course, we have to worry about fiat currency being destroyed by massive amounts of borrowing around the world. We are starting to see some credit issues and gold is money not credit. People will remember that. So short-term dips should continue to offer short-term buying opportunities.

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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