Gold Price Forecast: Golden Cross Reinforces Bullish Outlook

Gold Technical Analysis

The gold market has rallied a bit during the early trading session on Monday as we continue to see a lot of noisy behavior in general. Ultimately, this is a market that continues to see a lot of upward behavior and a lot of anti-US dollar behavior.

But when we look at the longer term, we’ve recently just bounced from a major trend line, so a lot of traders may have been watching that $4,000 level a couple of weeks ago closely. The market being a little bit positive on Monday is a good sign, especially after a couple of very impulsive days.

That being said, though, not being already long on gold, it’s probably a bit of a conundrum for traders at the moment. I know that I certainly don’t feel like chasing the market, but any pullback at this point in time, one would have to assume that there will be some people out there looking to get involved.

Technical Outlook

The $4,500 level looks to me, at least, as an area that might be a place to find value. Either way, I have no interest in shorting this market.

And despite the fact that interest rates are somewhat elevated, I think we’re starting to move on the principle that the Federal Reserve probably doesn’t raise rates this year. Although we are hearing from some of the members that they still think rates are on the table, which could, of course, cause a lot of volatility in this market.

We just have the 50-day EMA cross above the 200-day EMA, kicking off the so-called golden cross, which is a bullish sign as well.