Gold Price Forecast – Gold Continues to See Sideways Action

Gold Markets Technical Analysis

The gold markets continue to hang right around the 50-day EMA as we are basically killing time. At this point, I think it’s interesting that we have done almost nothing and at this juncture, you have to believe that we are waiting on something. That something might actually end up being the jobs number on Friday, as it could give us a bit of a heads up as to what the Federal Reserve will do.

It seems like a lot of people are betting on the Federal Reserve cutting rates by 25 basis points in December, but inflation is also picking up, so we have a fight on our hands. We also have geopolitical concerns, which are going nowhere, especially in places such as Ukraine.

So, I do think there’s an underlying bid in gold. Central banks are buying it, we’re in an uptrend, and the other issues that I mentioned previously all suggest that we could go higher. If we were to pull back from here, I think there are plenty of buyers underneath willing to get involved all the way down to at least the $2,500 level. The market rallying from here will have to deal with the recent swing high near the $2,725 level and then again at the $2,800 level. I’m still bullish on gold, and I do think it will get to the $3,000 level eventually, but right now, we’ve got some work to do.

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