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Gold Price Forecast – Gold Continues to See Strength Heading Into FOMC

By:
Christopher Lewis
Published: Sep 18, 2024, 14:02 GMT+00:00

The gold market rallied a bit in the early hours of Wednesday, as the markets continue to look at the interest rate situation globally, but we also see the geopolitical issues as a major driver of what happens in this market as well.

In this article:

Gold Markets Technical Analysis

The gold market has rallied slightly during the early hours on Wednesday as we continue to see a lot of noisy behavior out there when it comes to the gold market and precious metals markets in general. With that being said, it is worth noting that we have a lot of headwinds just above, but we also have a lot of headlines over the next couple of days.

After all, we have the Federal Reserve meeting late on Wednesday, which obviously will have a massive influence on this market, but we also have the Bank of England on Thursday and the Bank of Japan on Friday, which will still have a certain amount of influence as well. While the Fed is the main story here, the reality is that all central banks in the G-10 can move the market.

It’s obvious that the market is extraordinarily bullish and therefore I do like the idea of buying dips. And at this point in time, I think we have a situation where the $2,540 level underneath will be potential support after it was significant resistance. On the upside, if we can break above the $2,600 level, then I think this market could really start to go much higher. I have no interest whatsoever in trying to short gold. After all, I do think that the interest rate situation, the fact that central banks around the world are buying gold, the geopolitical concerns around the world, those all lead to higher pricing.

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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