Gold Price Forecast – Gold Continues to See Buyers on Dips

Gold Markets Technical Analysis

The gold market has bounced just a bit during the early hours here on Monday as the $2,650 level seems to be offering support right along with the 50 day EMA. In general, this is a market that I think continues to be very noisy, but I do think that it opens up the possibility of a little bit of range bound trading, especially this week as the market has to deal with a couple of different central banks, most notably the Federal Reserve and that could give us an idea as to what monetary policy will be like going forward.

After all, the Federal Reserve is expected to cut rates in the month of December by 25 basis points, but we now have 80% odds or so that the Federal Reserve will remain stable and not move in January. If that’s the case, it’ll have significant ramifications for gold. Beyond that, we have a lot of geopolitical concerns, which don’t seem to be going anywhere, so that might be something worth hanging on to in the back of your mind as well.

And then of course we had been in an uptrend previously. If we can break above the $2,740 level, then I think it allows gold to go right back to the all-time high, which is just shy of the $2,800 level. If we pull back from here, then I’m looking for the $2,600 level, followed by the $2,500 level to offer support and perhaps a buy on the dip opportunity.

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