Gold Price Forecast – Gold Markets Continue to Gain

Gold Markets Technical Analysis

Gold markets rallied again during the early hours on Wednesday, as it looks like we are going to continue to power higher. At this point, it’s obvious that gold cannot be shorted, and it’s also obvious that the bullish trend is more likely than not going to continue. After all, there are plenty of geopolitical reasons alone to think that gold should do well.

However, what I would say is that you need to be very cautious with getting aggressive here because we are so overextended. At this point, I would love to see some type of pullback that I can take advantage of because, quite frankly, this is a market that has gotten too far ahead of itself. With this being the case, I think you’ve got a situation where market participants will continue to look at the 2,075 level underneath as a potential buying opportunity as it could show,  market memory due to the fact that it used to be a resistance level.

So, with that, I think this area is probably where you want to see the market pull back to in order to find enough value to get long again to the upside. There really is no ceiling because when we were up in that area previously, it was during a weird illiquid spike during Asian trading on December 4th. That was a bit of an anomaly, so I don’t know that you can look too much into that wick for guidance at this point in time.

So, we are in a new realm here. And typically, what you get is some type of pullback. People will then try to cover their positions that may be suffering. Either way, I think if you are patient enough, you should get a nice buying opportunity in gold. And you most certainly should take a look at it for some type of value play when we do drop from here.

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