Gold Price Forecast – Gold Continues to See Buyers

Gold Markets Technical Analysis

The gold market rallied a bit during the course of the trading session on Friday as we continue to see a lot of upward momentum after the Federal Reserve cut interest rates 50 basis points. At this point in time, I do think gold continues to show a lot of strength in the longer term, because quite frankly, we’re in a scenario where there’s a lot of indecision about risk appetite. And we also have the possibility that perhaps the Federal Reserve is panicking a little bit, if that’s going to be the case, that’s not a good thing. And gold will benefit from the safety trade as it were.

Overall, I think this is a scenario that you have to be very cautious. I do like the idea of owning it, but I also like the idea of buying it on a dip. I don’t necessarily want to go chasing it. With that being said, I think that short-term pullbacks are the way to get involved and I believe that the 2,530 level is an area where a lot of traders will be looking to see whether or not it holds.

If it does, that would of course be a very positive sign and could end up being a fairly excellent entry point based on market memory. How high do we go from here? I don’t know, but I think 3,000 isn’t completely out of the question.

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