Gold Price Forecast – Gold Continues to Look Choppy

Gold Markets Technical Analysis

The gold market initially tried to rally a little bit during the trading session on Friday, but then gave back gains as it looks like. We’re basically lost at this point, just grinding away sideways. And that might make a little bit of sense considering that the core PCE numbers came out as anticipated. And of course, we are heading into a three day weekend so there will be less futures trading. With Labor Day on Monday, the United States will step away from the markets. Therefore, we probably have a quiet session or two ahead of us.

A pullback at this point in time has to be thought of as a buying opportunity. There’s plenty of geopolitical events out there that could continue to cause chaos. And then, of course, we have central banks around the world buying gold. Beyond that, we have interest rates dropping. So that makes the idea of owning gold a little bit more palatable as well. And then finally, it’s in an uptrend. It’s really that simple. The market continues to rise over time.

So, it’s clear that you should only be trading in this market in one direction. A pullback at this point, we’ll see support at the $2,500 level, followed very quickly by the $2,480 level, if history is to be believed. Either way, no interest whatsoever on my part in trying to get short of the gold market. At this point, I have a hard time coming up with a reason why the markets would change.

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