Gold Price Forecast – Gold Continues to See Buyers on Friday

Gold Markets Technical Analysis

The gold market rallied significantly during the course of the trading session on Friday, especially after the jobs numbers came out hotter than anticipated, but not really, massive revisions. We are getting closer to the top of the overall consolidation range, which is basically the $2,400 level. And I think at this point in time, it’s likely that we may see short-term pullbacks down the road that offer buying opportunities.

If we can break above the $2,450 level, then we could go much higher. In general, I think this is a situation where we have a lot of value hunters willing to get into this market. And it does look like we are simply killing time, trying to work off some of the froth after a massive shot higher. Keep in mind that the gold market, of course, is driven by central banks buying gold. And it’s also driven by interest rates perhaps falling. Then of course geopolitical concerns and we could have all of that around the world.

Either way, the massive borrowing in the United States alone is probably reason enough to own gold. The $2,300 level underneath is rather strong as far as support is concerned. And if we were to break down below the $2,280 level, then we just simply dropped to the 200 day EMA, which is, I believe, an area that a lot of technical traders would jump all over. Nonetheless, I do think it’s probably a matter of time before we break out to the upside and therefore, I like gold.

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