Gold Price Forecast – Gold Continues to See Strength Heading Into FOMC

Gold Markets Technical Analysis

The gold market has rallied slightly during the early hours on Wednesday as we continue to see a lot of noisy behavior out there when it comes to the gold market and precious metals markets in general. With that being said, it is worth noting that we have a lot of headwinds just above, but we also have a lot of headlines over the next couple of days.

After all, we have the Federal Reserve meeting late on Wednesday, which obviously will have a massive influence on this market, but we also have the Bank of England on Thursday and the Bank of Japan on Friday, which will still have a certain amount of influence as well. While the Fed is the main story here, the reality is that all central banks in the G-10 can move the market.

It’s obvious that the market is extraordinarily bullish and therefore I do like the idea of buying dips. And at this point in time, I think we have a situation where the $2,540 level underneath will be potential support after it was significant resistance. On the upside, if we can break above the $2,600 level, then I think this market could really start to go much higher. I have no interest whatsoever in trying to short gold. After all, I do think that the interest rate situation, the fact that central banks around the world are buying gold, the geopolitical concerns around the world, those all lead to higher pricing.

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