Gold Price Forecast – Gold Continues to See Support

Gold Markets Technical Analysis

The gold market initially fell a bit during the trading session on Friday but seems to have found enough support right around the $2,400 level to turn around and show signs of life. With this being the case, the market is likely to continue to see a lot of buy on the dip behavior. And if we were to break down below this area, then it’s likely that we could go closer to the $2,350 level. On the other hand, if we break above the $2,450 level, then it’s likely that we could go looking to the $2,500 level.

And I do think that probably happen sooner rather than later. The market is probably going to move mainly on the dollar, and the dollar is taking it on the chin a little bit as traders are starting to price in the idea that the Federal Reserve might cut rates a couple of times between now and the end of the year.

Furthermore, you have geopolitical concerns, which of course will come into play, as well as geopolitics. Almost always drives gold one way or the other and there is a lot of risk out there. So, it makes sense that gold would be attractive. Yields have dropped pretty significantly and that helps gold also. So, all things being equal, we are at the top of a consolidation range at the moment.

And I do think that it’s probably only a matter of time before we break out to the upside and continue to go much higher. I have no interest in shorting gold, and if we got some type of sharp pullback, to me it just invites more buying.

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