Gold Price Forecast – Gold Markets Continues to Recover on Each Dip

Gold Markets Technical Analysis

The gold market initially pulled back a bit during the trading session on Tuesday, but has since recovered after the CPI numbers because they were hotter than anticipated, but just a bit. So with that being said, it wasn’t a huge shock so I think at this point in time you continue to have the same market, one where traders come in to pick up dips as value.

There are plenty of reasons to believe that gold goes higher over the longer term, but quite frankly, I don’t like the idea of chasing it all the way up here. After all, gold has had a massive run as of late, and therefore, there’s no reason to pay up at this juncture. There are plenty of geopolitical reasons to think that gold will continue to go higher over the longer term and therefore I think if you are already involved in gold then you probably don’t have a lot to do.

However, sooner or later we will get a pullback and it could be somewhat substantial. It wouldn’t surprise me at all to see a $50 pullback. The $2075 level underneath should be rather significant support as it was once significant resistance and therefore I think a lot of people will be especially interested in that area.

Central banks around the world will be cutting rates this year and that will help lift gold, not to mention the fact that there are plenty of geopolitical issues out there that could come into the picture as well. And therefore, I think you really have to look at this as a market that you are trying to find a little bit of value in. That being said, I still think we have a scenario where a little bit of position sizing probably goes a long way. You don’t want to be overexposed right away, but you could build up a position as it gains.

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