Gold Price Forecast – Gold Continues to React to Bond Markets

Gold Price Predictions Video for 15-01-2024

Gold Markets Technical Analysis

The gold market rallied significantly during the day on Friday, as the producer price index came out lower than anticipated. This suggested that the inflation situation in the United States is starting to get under control a little bit, and as a result, we have seen gold turn right back around and start to rally again. All things being equal, this is a situation where I think you continue to find buyers on dips, and that is more likely than not going to be how you have to play this market. In general, this is a market that I do believe will eventually take off to the upside for a bigger move.

This is in complete counterbalance to what happened in the previous session when we had consumer price index numbers coming out hotter than expected, but not drastically hotter. So, with that being the case, it looks like inflation is still a bit of a moving target and traders are starting to bet on the idea that the Federal Reserve will become drastically looser in the year to come or perhaps even the next several years. With this, I think you’ve got a situation where gold could go looking to the $2075 level, which of course is a major resistance barrier.

If we can break above there, then I think we go higher. Short-term pullbacks at this point in time would continue to offer plenty of value that people will take advantage of, not only due to the 50-day EMA, but also the trend line that sits just below there. All things being equal, this is a positive market. It’s been positive for a while and even after yesterday’s action I suggested that eventually we would go higher. We just didn’t know if we had to revisit the $2,000 level. So, with that, it looks good. In particular, it looks like we are going to buy short-term dips as the best strategy. You certainly can’t short gold, at least not until we break below $2,000, which looks a lot less likely now that we’ve seen this move over the last 24 hours or so.

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