Gold Price Forecast – Gold Continues to See Support

Gold Markets Technical Analysis

Gold markets bounced a little bit in the early hours on Friday, as we have tested the 50 day EMA, and it does look as if it is going to offer a significant amount of support. All things being equal, this is a market that I do think continues to bounce. And not only do we have the 50 day EMA sitting just below offering a potential support barrier, but we also have the uptrend line as well. So, I think it all ties together for gold going higher eventually, but that doesn’t necessarily mean that it’s going to be a big quick mover. It might be more of a grind to the upside.

The $2,400 level above is an area that has caused quite a bit of noise and of course has seen a lot of both buying and selling. If we can break above the $2,400 level, then it’s likely that we could go looking to the $2,475 level. In general, this is a market that I think every time we pull back, there should be value hunters looking to pick up a little bit of cheap gold.

After all, there are plenty of geopolitical risks out there and central banks around the world continue to accumulate. Both of these are very bullish for gold over the long term. Yes, we have seen a pretty significant sell-off as of late, but when you look at the chart through the prism of the last nine months or so, we are just simply bouncing from a trend line after a sharp pullback.

For a look at all of today’s economic events, check out our economic calendar.