Gold Price Forecast – Gold Markets Continue to Shoot Straight up in The Air

Christopher Lewis
Published: Mar 5, 2024, 14:23 UTC

Gold markets rallied rather significantly during the trading session on Tuesday again, as we continue to see plenty of “FOMO trading” in the market as we raced toward the all-time highs.

In this article:

Gold Markets Technical Analysis

Gold continues to explode to the upside, and you can see that there is almost no real argument to be made for shorting this market other than it’s moved so quickly. That being said, we are nowhere near running out of momentum yet. And therefore, you have to be very cautious on the short side. On the other side of the equation, you don’t necessarily want to chase all the way up here. At this point, it would be extraordinarily reckless. If we do see a pullback, then I think a lot of people are going to want to jump into this market with the $2,075 level underneath, offering a lot of support. Unfortunately, if you are not long of gold already, the risk just isn’t worth taking.

You would have to be able to ride through a $75 loss per ounce before you found any substantiated support if it does pull back against you. In general, I think you’ve got a situation where you just have to be patient. Sometimes you get paid to wait, and that is almost certainly going to be the case here. With this, I have no interest in shorting, but I don’t want to chase this market either. Unfortunately, you just have to wait.

Keep in mind that interest rates, of course, have a major influence on gold, and if interest rates start to drop, that will help gold. Furthermore, geopolitical issues, of course, have been helping gold as of late, as there are plenty of them out there, but this is just insanity defined. We are up 5% in three days. We may go further, but the further we go in the shorter amount of time, the more likely we see some type of absolute vicious pullback.

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

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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