Gold Price Forecast – Gold Continues to Find Buyers After CPI

Gold Markets Technical Analysis

The gold market went straight up in the air after the consumer price index numbers in the United States came out weaker than anticipated, but in doing so, it does suggest that we are going to continue to be very noisy but continue to focus on the idea of whether or not the Federal Reserve will cut rates. If, in fact, they will, then that should help gold over the longer term.

On the other hand, if they remain tight, then it’s possible that the Federal Reserve will squash gold. I think at this point in time, though, the market has already made up its mind, and it’s probably only a matter of time before we truly see gold take off to the upside. Clearly, we have a lot of momentum, and the $2,300 level underneath has been like a brick wall.

It’s probably worth noting that the $2,400 level has been very difficult to overcome as well. So with all of that being said, I think you’ve got a situation where traders continue to press the resistance above, and I think short term pullbacks will end up being buying opportunities given enough time. Ultimately, this is a market that not only breaks higher, but I think eventually breaks above the $2,450 level to go looking to the $2,500 level. But we don’t necessarily know that it’s going to happen right now. With this, I remain bullish, but I’m looking for short term pullbacks to get involved.

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