Gold Price Forecast – Gold markets continue to consolidateGold markets pulled back initially during the day on Wednesday but reached higher after bouncing from the $1188 level. This is a market that continues to be sideways as we have seen over the last several days, and I think it makes sense that we continue more of the same as there is massive support just below.
Gold markets have been sideways for several days, and it appears that the markets are simply waiting for some type of catalyst to go higher. I think that the gold market continues to grind sideways in the meantime, offer a nice range bound trading opportunities. If we can break above the $1195 level, the market should continue to go much higher. Overall, I think that the market will then go looking towards the $1200 level, and that’s an area that I would expect to be a juicy target for buyers. We need to see the US dollar calm down a bit, as it has been a bit overbought.
I think the $1185 level is crucial, and if we can break down below there, then we could go much lower. The $1180 level underneath would be the next target, and then perhaps $1175. That would only be on a move higher in the value of the US dollar, something that I think is going to be difficult as the EUR/USD pair is close to so many important support level. I think that given enough time, Gold will pick up value, so I am more bullish than bearish but I also recognize that it’s going to take a bit of momentum to finally break out of the short term consolidation. Buying dips has worked over the last couple of days, so I will continue to do that going forward.