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Gold Price Forecast – Gold Continues to Struggle in The Same Region

By:
Christopher Lewis
Published: Feb 22, 2024, 14:28 UTC

In gold, as you can see, we did rally a bit early during the trading session on Thursday as the $2,030 level continues to offer a bit of resistance.

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Gold Markets Technical Analysis

In gold, as you can see, we did rally a bit early during the trading session on Thursday as the $2,030 level continues to offer a bit of resistance, which happens to be where the market fell apart from the surprise CPI announcement during the previous week. This of course, is a region in the market that will continue to be important, and therefore traders will continue to pay close attention to how the market behaves at that price.

With that being the case, I think a little bit of a pullback does make some sense due to the fact that there’s a little bit of market memory here on short-term charts. We are also in the middle of the overall consolidation, and that’s pretty commonly a place where you’ll see a little bit of trouble. This has been a very strong move to the upside, and it’s been stubbornly bullish, because every time we rally and give up some gains, we turn around and rally again, only to give those up again.

I think a little bit of a pullback makes a lot of sense and the $2,000 level underneath offers a significant amount of support that extends down to the $1,980 level. I do think that is a major area that people will have to pay close attention to, and I think at that point, if we were to break down below the 1,980 level, that would be extraordinarily negative. I don’t see that happening, though.

But if we did, obviously that could change everything. Given enough time, I think you have a scenario where traders are going to try to find value underneath, drive this market higher, and I think revisit the $2075 level as central banks around the world will continue to cut rates this year. However, we will have to wait and see whether or not we can break above the $2075 level, which for me, opens up a big buy and hold, maybe even a FOMO trade, as we had seen during that wicked spike in price on December 4th. But nonetheless, this is a situation where, in the meantime, short-term pullbacks are 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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