Gold Price Forecast – Gold Continues to Power Higher in Stretched Conditions

Gold Markets Technical Analysis

The gold market rallied quite a bit during the early hours on Tuesday, as we continue to see a lot of reasons for gold to continue to go to the upside. After all, a lot of people are looking at this through the prism of geopolitical risks, interest rates, of course, dropping. And at this point, we also just see so much momentum that I think people are willing to jump in and chase.

Beyond all of that, you also have central banks around the world buying gold, so it all ties together for a nice move. When you look at the past, you can see that we formed a bullish flag, and the measured move is to $2,800, so I think that’s where we’ll be going. That doesn’t mean that we get there overnight, and it is worth noting that we formed a shooting star during the day on Monday, so I do think a pullback’s coming. Whether or not this pullback is substantial remains to be seen, but I would be looking for a dip in order to get involved.

You don’t want to chase the gold market all the way to the top and then have to sit on a position for a couple of weeks in order to break even or finally start to make money. Sizing your position, of course, will be crucial as the volatility continues to pick up. But right now, I just think we’re at a situation where we got a little bit ahead of ourselves and we’ll have to see whether or not we can continue to break out. But my target, at least at this point in time, is $2,800. But I actually think we’re going to $3,000 before it’s all said and done.

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