Gold Price Forecast – Gold Continues to See Strength

Gold Markets Technical Analysis

The gold market initially pulled back just a bit during the trading session on Monday, dipping below the 2,300 level, only to turn around and show signs of life. The market right now is looking at $2,320 as a little bit of a barrier, but I think given enough time, we probably go higher.

You will of course have to pay close attention to interest rates in the United States due to the fact that the Federal Reserve is still very much in the picture. And of course, people are worried about inflation, but at the same time that can actually help gold. You also have to keep in mind the geopolitical issues around the world, which can help gold. And quite frankly, just looking at the momentum on the chart helps gold.

So all things being equal, I think we are still very much in an uptrend when it comes to the gold market and therefore it’s a one-way trade you don’t want to be short of the gold market. Above we have the $2360 level and it’s a short-term barrier, but if we can break that, then I think we go looking to the $2400 level rather quickly, while underneath we have the 2280 dollars level offering significant support.

The 50-day EMA sits just below there as well and that of course comes into the picture for support and therefore I think it remains buy on the dip from a technical analysis standpoint as well. Quite frankly, fiat currencies around the world are being eviscerated as we just spend, spend, spend and that includes the US dollar. Yes, the US dollar is stronger than other currencies but that’s just in relation to other currencies. So, with that being said, the market looks like one you are still looking to buy.

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