Gold Price Forecast – Gold Continues to See a Barrier

Gold Markets Technical Analysis

Gold has pulled back just a bit in the early hours of Friday as we are testing the top of a larger consolidation range. The $2,720 level is a significant barrier that we need to pay close attention to. If we can break above there, then the market is likely to go looking towards the $2,800 level again. However, I think we’re probably more likely to see a short term pullback and really, that’s not a bad thing. I think it gives you an opportunity to take advantage of cheap gold and buy the dip.

After all, we had been in a very bullish run for some time and therefore, the sideways action, I think, is likely to continue to have to work off some of this froth from what was a really big move during the year 2024.

The bottom of the range extends all the way down to at least the $2,600 level, if not a little bit lower than that. So, I think really, it’s almost impossible to short gold at this point, even if you knew it was going to fall for a couple of days. All things being equal, gold will have to deal with interest rates, but it also will have to deal with geopolitical issues around the world. So, I think there are a lot of things going on at the same time, and that’s part of why we are taking this break here. Nonetheless, when you look at the chart, it is most certainly in an upward trajectory, and therefore gold remains bullish longer term.

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