Gold Price Forecast – Gold Market Continues to Rally on Tuesday

Gold Markets Technical Analysis

You can see that the gold market has rallied quite nicely during the early hours on Tuesday in the Asian and especially in the European sessions. At this point, it looks like gold is trying to build the necessary pressure to go much higher. Whether or not it can remains to be seen, but we are banging up against that ceiling.

At this point, I think the best trade, if you’re not already involved, is any pullback that you get to take advantage of. However, there’s only one way you can be, and that’s long. It’s clear that you cannot short the gold market, and after the candlestick during the day on Tuesday, it seems very unlikely that we’re going to get a significant pullback towards the $2,075 level, which would be my ultimate buying price.

The 50 day EMA has broken above there, and it is racing towards the trading area right now, but it’s got a long way to go. This market has been extraordinarily bullish, and I think at this point in time, this is a scenario where we are going to try to take out the shooting star from last week, and if we do, gold continues to go much higher.

Gold is a market that I have no reason to short anytime soon, not only from a technical analysis standpoint, but also from a fundamental analysis standpoint, as we have so many central banks out there buying it. We have a lot of central banks getting ready to cut rates, and of course, we have plenty of geopolitical tension that makes this even more interesting. With that being said, I am bullish. Anytime it pulls back, I just think of it as gold going on sale. Longer term, I expect gold to go to $2,500.

For a look at all of today’s economic events, check out our economic calendar.