Gold Price Forecast – Gold Continues to Scream Higher on Friday

Gold Technical Analysis

The gold market has rallied again during the trading session on Friday as we continue to see the safety trade in full effect. Quite frankly, this is a market that I think will continue to go much higher, but we will eventually get some type of pullback. I’ll be looking at that pullback as a potential buying opportunity, and hopefully, we get that fairly soon. With that being said, I like the idea of buying gold on dips. I think that it will continue to be the play, and I think at this point in time, it’s very possible that the $3,000 level is now going to act as a major floor in the market.

All of that being said, I think you also have to pay close attention to the idea that fear is very palpable out there. And as the US dollar gets hammered, it does help gold. However, eventually the safety trade in the dollar will reappear if this keeps up because quite frankly, we are seeing things break everywhere.

Gold is one of the best ways to protect your portfolio, but sooner or later, I suspect we’ll get a bid in the treasury market, and that could also lift the dollar, thereby maybe slowing this down. The bullish flag that we had formed previously, in my estimation, suggested that we could go to the $3,300 level, and there’s nothing on this chart right now that remotely suggests that we can’t get there. So with that being said, I still believe the gold goes higher, I just recognize we’re a little overextended in the short term.

For a look at all of today’s economic events, check out our economic calendar.