Gold Price Forecast – Gold Continues to See Pressure to The Upside

Christopher Lewis
Published: Jun 14, 2024, 13:29 GMT+00:00

The gold market continues to see a lot of noise, as the G7 is now threatening Chinese banks that deal with Russian interests. Because of this, the world is waiting for a further escalation of geopolitical tensions.

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Gold Markets Technical Analysis

Gold rallied quite nicely during the early hours on Friday as the $2,300 level has offered a significant support level. That being said, I think we’ve got a situation where given enough time, we probably recover completely. And the shot higher on Friday was more or less based on the G7 threatening Chinese banks that they are going to cut them off from the financial system if they deal with Russia. The reality is we are already starting to see oil bought in Chinese yuan, Russian rubles, et cetera.

Because of this, I think this will eventually mean nothing. Furthermore, let’s not forget that the Russians are still selling oil to the EU via back channels, as well as natural gas. So, I think what’s going to end up happening is this will cool off. Now, it doesn’t necessarily mean the gold will cool off because there are plenty of geopolitical issues out there that could come into the situation and send gold even higher.

Quite frankly, we are in a strong uptrend and there’s no reason to think that changes anytime soon. So, with this, I like the idea of buying gold, but I also recognize that we need to hang on to the $2,280 level underneath. If we were to break down below there, then we could see a deeper correction, but right now it looks like the buyers most certainly will have the upper hand overall. I do believe that sooner or later we will try to get to the $2400 level above.

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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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