Gold Price Forecast – Gold Continues to Look Sideways Overall

Gold Markets Technical Analysis

The gold market bounced a bit in the early hours on Tuesday as we continue to see a lot of buyers on dips. That being said, I don’t read too much into it because after all, it was New Year’s Eve and volume has been dropping. The $2,600 level is an area that has been important more than once. So, I think it does make a certain amount of sense that we are bouncing from there. Not only that, but to the uptrend line, of course, shows signs of strength as well.

The 50 day EMA sits just above and that is squeezing to the downside. But I don’t think that inertia is building up, at least not right now. I think this is more or less people squaring up positions heading into the new year holiday again. So much like last week when we were discussing Christmas, now we’re discussing another off day. Traders will have to bring profits home for accounting purposes. Money managers will have to bring profits home for clients, that type of thing.

So, I don’t read much into this, but if we were to close above $2,650, then I would take the uptrend back into account and an attempt to get to $2,715 level as a very real possibility. If we were to break down below $2,575, then I think you have a little bit deeper of a correction. Keep in mind though, that interest rates are higher than they in theory should be. And that has been working against gold for a while. All things being equal, when I look at this, I don’t want to short this market. I think it’s probably more back and forth than anything else from here.

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