Gold Price Forecast – Gold Continues to Rise Much Higher

Gold Markets Technical Analysis

As you can see, the gold market has continued to rally during the trading session after the jobs number were a bit lackluster in the United States. That being said though, this is a market that is overdone and I do think eventually gravity does come back into the picture. I think given enough time a significant pullback is coming and that will be your opportunity. You simply cannot chase gold the way it’s acting all the way up here. After all, that was $100 ago that we broke out and therefore I think we’ve got to at least retrace $50 in order to even remotely look like a market that you should try to pick up.

If we do continue to go higher, there will be other ways to play this, probably more or less shorting the US dollar, but we’ll have to wait and see how that plays out. A lot of concerns out there, geopolitically, will continue to drive gold higher, and then, of course, you have interest rates. If interest rates in America continue to drop, that could help as well. So with all that being said, I do think that gold is something that you want to own for quite some time.

However, you don’t necessarily want to buy it after it’s ran up the way it has. There’s no point in chasing it. Just wait for a decent price and then take advantage of it. Think of this more or less as an investment and a lot less as a trade. The market has now broken well above that $2075 level that had been so important for so long. So I think we are free to go much higher. But ultimately, I think we have a scenario where you just have to wait for gold to go on sale and take advantage of it. Chasing it up here could work out eventually, but you are going to have to ride out a huge drawdown sooner or later.

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