Gold Price Forecast – Gold Continues to Attempt to Find a Range

Gold Markets Technical Analysis

The gold market shot higher during the trading session in the early hours of Thursday, but it has given back some of the gains. At this point, we have to determine whether or not people are willing to step in and pick up cheap ounces, or if the market needs a little bit of time to settle down. I suspect it’s the latter of the two, but it’s probably also worth noting that liquidity is an issue this time of year, with most traders focusing on Christmas and not so much on trading.

So, I would expect a lot of noisy movement. Nonetheless, this is a market that given enough time, I believe we’ll try to get back to the 50 day EMA. However, if we were to break down below the $2,550 level, then we probably have a much deeper correction. The US dollar has been like a wrecking ball against everything at this point, but gold has somewhat held its own, which makes a certain amount of sense, considering there’s a lot of geopolitical risks out there just waiting to jump into the market.

Again though, I think the biggest story here is probably somewhat a lack of liquidity and therefore you need to be very cautious about your position size this time of year. But the early action on Thursday does suggest that Wednesday was overdone after that FOMC press conference.

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