Gold Price Forecast – Gold Markets Continue to Grind Away

Christopher Lewis
Published: Feb 28, 2024, 15:58 GMT+00:00

The gold market has gone sideways during the early hours on Wednesday, as we continue to see a lot of sideways action in general.

In this article:

Gold Markets Technical Analysis

You can see that gold continues to grind sideways in general and at this point in time, it continues to hover just above the 50-day EMA. So, with that being the case, I like the idea of perhaps buying a little bit on a short-term dip. I have no interest in shorting this market, at least not anytime soon as there are plenty of geopolitical issues out there that could continue to drive gold higher. Furthermore, I think you got a situation where the interest rate situation continues to be favorable for gold over the longer term.

Ultimately after that, I think you’ve got a scenario where traders will continue to look at this as a market that has a lot of demand due to geopolitical concerns, due to the interest rate situation as the Fed and other central banks around the world should be cutting soon. If that’s going to be the case, then you have to look at this through the prism of a market that is more likely than not going to continue to have plenty of reasons to go higher.

Furthermore, the geopolitical issues alone probably will drive gold higher. I like buying dips, I like the $2,000 support level underneath, that adds a major area of interest. After that, the market then sees the $1,980 level as part of that same support region. So in general, I just don’t have any argument to short this market, although I do like the idea of buying dips down to that area if we get the opportunity.

The $2,060 level above should be resistant. The $2,075 level above should be the ceiling, at least in the short term. Anything above there then suddenly becomes buy and hold in a market that could really start to take off if that were of course going to be the case. Ultimately, I like buying this market. I have no interest in shorting. The 200-day EMA is also approaching that support region, so I think that’s another reason to have a lot of faith in it.

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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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