Gold Price Forecast – Gold Still Looks Bullish

Gold Markets Technical Analysis

Gold has pulled back just a bit from the highs, but really at this point in time, I think it’s probably only a matter of time before we get a bigger move to the upside. If and when that happens, then I think you have to look at this through the prism of a market that is going to continue to drive towards $2,200, and then eventually $2,500. It does make a certain amount of sense, considering that central banks around the world will continue to be very loose with their monetary policy in the future.

We’re right now on the precipice of the economic cycle changing. Even if we do get some type of major pullback from here, it’s very likely that the $2075 level will now be the massive floor in the market that everybody pays the most attention to. After all, it is an area that previously had been major resistance multiple times in the past.

So it does make a certain amount of sense that people would be particularly attracted to it as an entry point or for those who are still short of gold trying to get out of the market without massive losses. Ultimately, this is a market that I think remains very noisy. We’ll have to see how it plays out, but there’s only one direction you can trade it, and that is most certainly to the upside. I like buying dips, but I don’t like chasing this market because it has rallied so much.

The alternative scenario might be that we just simply go sideways on this area to work off some of the excess froth and we never really get a significant pullback. That would be viable as well, so keep that in mind. Ultimately, I do think that gold goes much higher though, so I might scale in with some small positions.

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