Gold Price Forecast – Gold Continues to Chop Back And Forth

Gold Markets Technical Analysis

The gold market rallied rather significantly in the early hours on Wednesday, but with CPI coming out at 0.3% instead of 0.2%, traders freaked out and started buying the US dollar, which, of course, weighs upon the gold market itself. All things being equal, this is a market that I think still goes higher regardless because we have a situation where the Federal Reserve is going to cut rates and probably cut rates multiple times.

Really at this point, I think they are more worried about keeping their word than anything else. Remember, these are people we’re talking about with big, inflated egos. And of course they have to support Wall Street. It’s what they do. Their third unofficial mandate is to protect Wall Street and the stock market.

So, I think this remains a buy on the dip market with the $2,500 level obviously offering a lot of interest. But we also have the $2,475 area offering support as well that a lot of people will be looking at. Short-term pullbacks continue to be how I enter the market slowly, and in little bits and pieces.

And if we can break above the $2,530 level, then it’s likely that the gold market will go much higher. At that point, then we’re starting to look at the $2,600 level as a potential target. The 50-day EMA currently sits right around the $2,450 level. And that, for me, is the floor in the market.

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