Gold Price Forecast – Gold Continues to See Pressures

Gold Markets Technical Analysis

Gold initially surged a bit during the early hours on Wednesday, but it looks as if we are running into a little bit of noise near the $2,370 level. This is an area that was difficult previously, so it’s not a huge surprise to see momentum give it up a little bit here.

That being said, I think any short-term pullback is more likely than not going to be thought of as a buying opportunity. And you can even make a little bit of an argument for a bullish flag being formed at the current trading block. The market certainly sees a lot of support underneath, regardless, with the 2300 level being a major support level and the 50-day EMA racing toward it being a potential backup to that support level.

This isn’t even to say that we will fall that far, just that we could, and it really wouldn’t change much. If we were to break down below the 50 day EMA, then the next major support level is down at the $2,200 level. I think it’s more likely than not that we break out to the upside before it is all said and done, and if and when we do, we could very well go looking to the $2,500 level.

The massive move higher as of late has slowed down, but that makes sense. We are just simply consolidating gains. Inflation, of course, will be front and center, but keep in mind, regardless, there’s a lot of geopolitical concern out there. And of course, central banks around the world have been buying gold, so that adds upward pressure as well.

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