Gold Price Forecast – Gold Continues to Consolidate

Gold Markets Technical Analysis

The gold market pulled back just a bit during the trading session on Friday, as we continue to see a lot of digestion of a massive move higher. For what it is worth, we recently have broken out of a bullish flag, and the measured move is supposed to send the market to the $2,800 level, but really at this point in time, I think you’ve got a situation where we could get there, but I also think it’s going to be noisy. Because after all, just recently, we jumped about 6% in a handful of days.

So gold, I think, is in the process of just digesting all of this momentum. Even if we do fall from here, the $2,680 level is an area where you could start to see support. And then again, most certainly at the $2,600 level, which also features the 50-day EMA, an indicator that could offer a bit of support in and of itself.

Longer term, I think we not only reach the $2,800 level, but I do think that we go as high as $3,000, which at this point is my longer term target. That being said, I do recognize that geopolitics, central banks around the world collecting it, as well as cutting rates, are all working in favor of gold going higher. This continues to be the case at this point, and as far as I can tell, we will have more of the same going forward in the gold markets.

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