Gold Price Forecast – Gold Pulls Back Into Consolidation Area

Gold Markets Technical Analysis

The gold market has fallen a bit during the Friday early hours as it looks like we are consolidating after that massive shot higher. We did get a spike after the Federal Reserve announcement, but at this point we have given that back and now it looks like we’re just kind of settling in.

I think at the end of the day, not much changed after the Federal Reserve made its announcement, so it does make a certain amount of sense that we’re back where we started. Nonetheless, the technical analysis on this chart does look very strong, as the $2,075 level underneath is the floor, and we are nowhere near there. In fact, I think there is significant support near the $2,150 level that you will have to be cognizant of and you will have to respect.

With that being the case, I think you’ve got a scenario where this is a dip that you’ll be buying. You just need to see some sign of a bounce. At the very least, I would anticipate that we are going to consolidate for a while and then eventually break higher. But if we were to break down towards the 50-day EMA or the $2075 level, that would only offer more value that people would be willing to jump in and take advantage of.

Interest rates are going lower this year, and that will be one of the main drivers. Furthermore, we have a lot of geopolitical concerns out there at the same time, so that also helps. And then, finally, we have central banks around the world are buyers of gold right now. They know that they’re going to have to inflate away the value of fiat currency, and therefore gold is something that they will use to shore up their balance sheets. With all that being said, this remains a very bullish market.

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