Gold Price Forecast – Gold Continues to Look Strong Despite Wednesday Selling

Gold Markets Technical Analysis

The gold market got hammered during the early hours on Wednesday as we continue to see a lot of sloppy and indecisive trading around the world. Quite frankly, this is a market that buyers will continue to jump into every time it falls. So, I’m not overly concerned at this point. The $2,500 level of course would attract a certain amount of attention, but we also have to look at the $2,480 level as potential support as well. After all, market memory comes into the picture at that point, and that should then have people looking to pick up cheap gold.

A lot of this is driven by the US dollar weakness, but at the end of the day, the US dollar can go higher while gold does as well. That’s a myth. All you have to do is look at a chart of the entire decade of the 1980s and see that it does in fact break, the correlation breaks down. The central banks out there buying gold will continue to put a floor in it. The geopolitical tensions will, and of course, interest rates dropping will as well.

There’s also that safety trade, but this is a market that’s been so choppy and upward for so long that this just becomes normal behavior. I really don’t see anything on this chart that tells me anything other than you should be buying dips. I certainly would not be shorting the gold market. It’s far too strong.

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