Gold Price Forecast – Gold Continues to See Range Hold

Gold Markets Technical Analysis

The gold market rallied a bit in the early hours on Friday, despite the fact that jobs numbers came out hotter than anticipated, but what I’m looking at here is a chart that is somewhat sideways, and I think it probably remains that way. The $2,700 level begins quite a significant amount of resistance all the way to the $2,715 level, an area that’s been very difficult to overcome for about two months now. All things being equal, this is a market that could very well pull back from here and stay right where we’ve been. It would make a certain amount of situation awareness to recognize that the market had been a little overdone during the previous year. And we may have to work off some of this froth.

There are still a lot of questions when it comes to the Federal Reserve of Monetary Policy and the jobs number did not help for that. Other than to say, rate cuts are probably off the table for the foreseeable future and if that’s the case, eventually that does work against gold, but I think right now, we’re just technically bouncing around. Whether or not it continues to go higher remains to be seen, but it would have to clear the $2,720 level for me to get bullish. On a pullback, I suspect that the 50-day EMA offers support, and then again, the $2,600 level. As things stand, right now at the moment, I’m more or less neutral of this market, but I am watching to see if it does in fact break out to the upside.

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