Gold Price Forecast – Gold Continues to Look a Bit Stretched

Gold Markets Technical Analysis

The gold market initially rallied a bit during the early hours on Thursday but has turned around to show a little bit of hesitation. At this point, I think this is a market that will continue to be very noisy, but I think well-supported. We are testing the highs and failing again, but a short-term pullback more likely than not will find plenty of buyers, especially near the $2,400 level.

If we do break to the upside, then the $2,500 level gets targeted. And I think that does happen given enough time, but in the short term, we may be a little extended and see a pullback or sideways action. This is typical in a strong uptrend because you can’t go straight up in the air forever.

Plenty of traders out there will be looking for a buy on the dip opportunity due to geopolitical concerns and of course interest rates around the world possibly dropping. In general, I think this is a market shooting straight up in the air that just quite frankly needs to collect more buyers, whether that is through cheaper pricing or just being comfortably elevated, that doesn’t really matter.

Your job as a trader is to simply wait to see if there’s value offered via time or price. I have no interest in shorting gold and there’s nothing on this chart that even remotely suggests that you should short the market, and therefore you are simply looking for a reason to buy this asset.

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