Gold Price Forecast – Gold Continues to See Strength During Holiday

Gold Markets Technical Analysis

The gold market has been very quiet during the Thursday session, but this should not be a huge surprise considering it was Independence Day in the United States, so the futures market itself would have had very limited trading. Nonetheless, we can look at the chart and see what the proclivity is, and it is to the upside.

Friday is Non-farm Payroll, and that of course will have a major influence on what happens next. Because of this, what I’m hoping for, quite frankly, is that we get some type of sharp pullback that I can buy into. The upward proclivity I think continues for the foreseeable future, because quite frankly, there’s too many things working in favor of gold.

The first one of course is that major central banks, Russia, China, and India, a whole host of other central banks are all buying gold. The West, especially the United States, is borrowing massive amounts of money and that will debase the dollar eventually. And therefore, it does tend to drive gold up over the longer term. And then of course there’s a lot of geopolitical risk out there. A fourth reason, quite frankly, would just be the fact that we’re in an uptrend.

That hasn’t changed. We have been working off some froth for several months now, but at the end of the day, I do think that we will eventually go looking to reach the $2,400 level and then perhaps break above there. A pullback to the 50-day EMA, or better yet, the $2,300 level would be an excellent entry as far as I can see. I have no interest in shorting gold and at this point in time, even if we broke down, I just looked to buy it at even lower levels.

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