Gold Price Forecast – Gold Continues to See Support After a Dip

Gold Markets Technical Analysis

The gold markets pulled back just a bit during the early hours on Monday, as we broke back below the $2,500 level. But I think at this point in time, it remains a buy on the dip type of market. We had recently broken through the top of an ascending triangle. So, to pull back and test that area makes quite a bit of sense. I think this offers value that we will be taking advantage of.

And really at this point, I think we’re just looking at each and every dip as value. Central banks around the world continue to buy gold. So that puts upward pressure on it as well. But furthermore, you have to look at this through the prism of a market that I think given enough time will more likely than not continue to see support all the way down to at least the $2,400 level. The $2,400 level, of course will be backed up by an uptrend line as well.

So, all of that being the case, I think you’ve got a situation where traders will continue to look at this through the prism of, can I find value? I do believe gold goes much higher. And now that we have pierced the psychological barrier of $2,500, I think you’ve got a scenario where traders will continue to look at this through the prism of a market on an uptrend that continues to not only have central banks buying the precious metal, but also, we continue to see plenty of geopolitical issues that will drive gold higher as well.

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