Gold Price Forecast – Gold Pulls Back to Major Support

Christopher Lewis
Updated: Jun 18, 2024, 14:33 GMT+00:00

The gold market continues to see a lot of support underneath, as the $2300 level is an area that has proven itself multiple times. This is an area that I think could determine the next $100 in either direction.

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Gold Markets Technical Analysis

Gold markets pulled back just a bit during the trading session on Tuesday in the early hours, as it looks like we are going to continue to see the 2300 level as important support. The $2,300 level has been tested multiple times before, and now it looks like we’re just bouncing along the bottom of what appears to be a larger consolidation phase between $2,300 on the bottom and $2,400 on the top. We obviously have to ask a lot of questions about the Federal Reserve and whether or not they are going to be cutting, because now people are suggesting that there’s only going to be one cut between now and the end of the year, even out there suggesting that there will be none.

So, with that, you have to recognize that the gold market is going to be very noisy in general. If we were to break down below the $2,280 level, then I think it opens up even more significant selling pressure. The market breaking down below the $2,280 level could open up a move down to the $2,200 level, possibly down to the $2,150 level where the 200-day EMA currently resides. Nonetheless, this is a market that I think, regardless, you’re going to be looking to buy dips. I don’t know what it’s going to take to get to the $2,400 level again, but at this point in time, I do think we will return there sooner or later.

There are plenty of geopolitical concerns out there that will continue to cause headaches and therefore I think there will be a lot of demand for gold. Furthermore, central banks are big buyers and of course treasuries around the world are borrowing money hand over fist and that typically helps gold as well.

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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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