Gold Price Forecast – Gold Conintues to See Buyers

Gold Markets Technical Analysis

The gold market rallied a bit during the early hours on Friday as we continue to see a lot of noise out there. But quite frankly, I think you’ve got a situation where the $2,500 level continues to attract a lot of attention, and therefore I think it makes a lot of sense that we would see this market struggle with certainty.

Furthermore, we have the Jackson Hole Symposium going on during the same time, and there will be a speech by Jerome Powell that eventually is released and that will have a major influence on what people expect the monetary policy out of the Federal Reserve to be. This of course is almost always a major driver, and this point in time is no different.

With that being the case, I think volatility remains, but I do like buying dips in the gold market because it’s in an uptrend and, of course, geopolitical concerns continue to be a major problem. Furthermore, we have central banks around the world buying gold, providing a little bit of a floor anyway, and if interest rates do drop, that makes gold much more attractive as paying for the storage becomes less of a burden because higher interest rates, typically you can just own paper and get a return. All things being equal, this is a market that it’s not until we break down below the $2,400 level that I would even consider shorting this market, as there are other factors like geopolitics that could lift this market as well.

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