Gold Price Forecast – Gold Market Falls to Kick Off The Week

Christopher Lewis
Updated: Apr 22, 2024, 14:34 GMT+00:00

The gold market fell hard to kick off the week, as the tension in the Middle East didn’t increase over the weekend. This being the case, we might work off a bit of froth in the massive uptrend.

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Gold Markets Technical Analysis

Gold has fallen rather hard as quite frankly, things didn’t escalate over the weekend and that has people relaxing. That being said, it does make a certain amount of sense that this pullback happens. And quite frankly, I think it does end up being a buying opportunity.

The catch, of course, is where do we start buying. $2,200 underneath for me would be ideal, but I don’t know if we fall that far. In fact, even though we have fallen the way we have, we are still very much in a basic consolidation phase and therefore we could bounce from here. Remember, we shot straight up in the air for a while.

So typically, markets will either go sideways and try to work off some of the excess froth or they’ll pull back and I think both of these are very likely outcomes. So, because of this I’m not rushing in to buy gold. But if I do see a bit of a bounce, I probably will add a bit more.

At this point in time I think you just have a market where you’re either long or you’re on the sideline, and I don’t like the idea of chasing at this point. So, the fact that we have pulled back a little under 2% early is a good thing. I’d like to see it fall even further, quite frankly, so just looking to pick up value, not wanting to chase, not getting huge in my position sizing is how I’m going to continue to play gold. I do believe gold goes higher over the longer term, but at the same time, there’s no need to take losses in the short term.

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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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