Gold Price Forecast – Gold Continues to Look at Ceiling

Gold Markets Technical Analysis

The market in gold seems to be fairly bullish again during the early hours on Thursday, but at this point, we are most certainly testing the top of the overall range, and I think that is something worth paying attention to. If we can break above the $2,720 level, then I would be a little bit more confident about the continuation of the uptrend. Longer term, I do think that probably ends up being the case. But right now, we have to determine whether or not interest rates are going to drop enough to make gold go higher, or perhaps maybe the US dollar will calm down.

The geopolitical situation certainly makes a lot of sense for gold to be strong and of course, if you buy gold right now, truthfully, you’re going to get more mileage buying gold against something, you know, like the Australian dollar, the Canadian dollar, Japanese yen, that type of thing, not against the US dollar. But as it is the standard, this is how we measure gold and it looks like we are going to try to break out, but we have to wait and see.

Buying here might just simply be a bridge too far and you’d just be chasing the trade. If we get a short-term pullback, I think it’s a very possible setup near the 50-day EMA, and again, at the $2,600 level. I think right now, you still have to look at this as a neutral market that’s just drifted a little higher. Now we have to see if it’s got the momentum to finally get moving.

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