Gold Price Forecast – Gold Continues to Search For Floor

Gold Markets Technical Analysis

The gold market rallied slightly during trading on Monday as we tried to recover from the absolute brutal beatdown that was seen on Friday. We are hanging around the $2,300 level, and this is an area that I think will continue to be crucial. The 50-day EMA sits just above as well, so we will have to pay attention to that, and if we can clear it, I think that gives gold the momentum or possibility of at least consolidating in this area that it’s been in, perhaps allowing the market to rise another $100. On the other hand, if we turn around and break down below the $2,280 level, that could open up more selling. That does not necessarily mean that I want to short the gold market.

It just means that I’ll be looking to buy it at lower levels. With this being the case, I do think we are at a major inflection point and the next 24 hours could really give us a lot of momentum in one direction or the other. Keep in mind that Wednesday is the FOMC meeting in the United States so that of course will have its own influence on the market so it could be a very strange and choppy week. Nonetheless, we are still very much in an uptrend despite the fact that the candlestick on Friday was horrific to say the least.

With that in mind, I will still look for buying opportunities until we break the trend, which I don’t see happening until at least the 200 day EMA, which is closer to the $2,150 level below.

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