Gold Price Forecast – Gold Continues to See Buyers on Dips

Gold Markets Technical Analysis

The gold market has been all over the place during the trading session in the early hours of Thursday, and we have even seen a strong sell off at one point, but it looks like the buyers are coming back in order to try to pick this market up. We are in a strong uptrend, so that’s not a huge surprise, and anytime you get a dip, there will be a certain number of people out there willing to get involved. After all, this has been one of the best trades so far in the last three or four months, and we have recently broken above the top of a massive bullish flag that suggests we are going to go much higher. In fact, it suggests that we could go as high as $3,300.

So, with that in mind, I don’t have any interest in trying to get too cute here. I look at dips as short-term buying opportunities, but I also recognize that longer-term traders may be adding to positions while we are there. In other words, it works for everybody. The $3,000 level underneath should be significant support, and then the $2,900 level after that, especially now that the 50-day EMA is starting to race towards that level.

With geopolitical concerns out there continuing to be an issue and of course the US dollar suddenly looking a bit weaker, I think it all lines up quite nicely for stronger gold prices. Central banks around the world are more likely than not to get a little easier with their monetary policy this year, so gold is just simply front running that as well.

For a look at all of today’s economic events, check out our economic calendar.