Gold Price Forecast – Gold Continues to Look Strong

Gold Markets Technical Analysis

The gold market initially pulled back just a bit during the course of the trading session on Tuesday, but then turned around to show signs of strength. It looks like the $2,500 level continues to be very supportive, as well as the area just below there. Ultimately, I do think that the gold market goes higher because to begin with, we’re in a strong uptrend and that of course makes quite a bit of sense. The market breaking to the outside could challenge the $2,530 level which of course is an area that is significant resistance and a barrier. If we can break above there then the market could go much higher.

All things being equal, this is a market that as every time we pull back, there should be buyers that would be taken advantage of cheap gold. Keep in mind that the geopolitical situation around the world continues to be tenuous at best, and that means gold should continue to find demand. Furthermore, you also have to keep in mind that interest rates are going to fall. And that helps gold as well, as it means that you don’t get as much of a return on paper assets (bonds), and it makes storage fees more palatable for metals.

And then beyond that, we have India, China and Russia at the very least buying gold hand over fist. So, I think at this point in time, it’s likely that we will eventually break out to the upside. And at that point, we probably go looking towards the $2,600 level of the longer term short term pullbacks for me remain buying opportunities.

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