Gold Price Forecast – Gold Continues to See Buyers on Dips

Gold Markets Technical Analysis

Gold markets initially dipped a bit during the early hours on Tuesday, but then found the $2400 level to be supportive enough to turn things back around. If that in fact ends up being the case, then it shows that buyers are willing to step in and pick up every dip. After all, during the Monday session we saw a massive sell-off of the gold market, but perhaps we have seen the bulk of it because a lot of times these levered funds have to sell what they can and not necessarily what they need to. A lot of the assets that they own are illiquid, so they will go to other assets like gold, sell it off, bring the money home as it were, and cover other losses.

The gold market has been in an uptrend for quite some time. And I don’t think that changes anytime soon considering everything that’s going on. To begin with, we have a lot of geopolitical tension out there that could drive gold higher. But we also have to keep in mind that the bond markets are starting to see crashing rates. And that means that gold becomes a little bit more attractive. Furthermore, the market also has to keep in mind that the central banks around the world are also buying gold.

So, it all comes down to the reality that the market is likely to continue to find plenty of buyers not only at the $2,400 level but the 50-day EMA and the uptrend line that sits underneath there. And in fact, it’s not until we break down below the $2,300 level that I even become remotely concerned about the uptrend. As far as the target is concerned, I still think $2,500 is where we are trying to get to.

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