Gold Price Forecast – Gold Continues to See Interest

Gold Markets Technical Analysis

The gold market has gone back and forth during the course of the early hours on Monday as we try to sort out where we are going to go longer term. All things being equal, it’s probably worth noting that the market is in the midst of trying to form some type of bullish flag, so that might be part of what’s going on from a technical analysis standpoint as far as traders are concerned.

Either way, gold continues to power higher and quite frankly, it should, considering that the bond market is suggesting that inflation is going to reaccelerate. Short-term pullbacks at this point in time should continue to offer buying opportunities, with the $2,600 level underneath offering a bit of a floor. The 50 day EMA is currently trading right around the $2,550 level and rising and therefore, I think it’s probably only a matter of time before we see plenty of value hunting and plenty of gold buying.

If we break to the upside, clearing the $2,690 level, it’s possible that the market could go much higher, perhaps reaching $2,700 followed by $2,800 and so on. In fact, it would not surprise me at all to see the gold market go looking to the $3,000 level by the end of the year. Short-term pullbacks, like I said, should see plenty of buyers, but if we were to break down below the $2,530 level, then I think it would be a much steeper and more important correction. That being said, with inflation likely to go higher, and of course all of the geopolitical issues, it’s really difficult to imagine a scenario where gold loses a significant amount of value anytime soon.

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