Gold Price Forecast – Gold Continues to See Support

Gold Markets Technical Analysis

The gold market has tested the $2,400 level, an area that of course is a large round, psychologically significant number, and if we can break above there, then it’s possible that we could go to the $2,425 level. Anything above there opens up a much bigger move, as it would compete for the attention of traders due to momentum re-entering the market. It’s probably worth noting that we just tested the 50-day EMA and so far, it looks as if it is trying to hold, which makes sense as it is so widely followed by technical traders around the world.

Even on a pullback here, I believe this is a market that will eventually find a reason to continue going higher. The bond markets are seeing interest rates drop, so that certainly helps gold and I think you also have to keep in mind there is more than enough out there as far as geopolitical concerns are listed and therefore, I think you’ve got a situation where it’s a simple matter of safety.

The US dollar of course can have a major influence on gold but right now I think it’s more about interest rates and geopolitical concerns than anything else. I remain bullish, but I also recognize we have a big fight on our hands, and as a result, you should pay close attention to your position sizing in this market. The gold market can get extraordinarily volatile, so always pay close attention to this market, because it can give you a gauge on the risk appetite around the world.

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