Gold Price Forecast – Gold Continues to See Upward Momentum

Gold Markets Technical Analysis

Gold continues to see upward pressure yet again, as we are well above the $2,500 level with this being the reality. I think at this point in time, certain traders are looking for short-term pullback to take advantage of value in a market that I think ultimately will go much higher. In fact, I think this is a scenario where the $2,500 level will eventually end up being a major barrier to pay attention to for support.

The market is likely to continue to see a move towards the $2,700 level based on the measured move of the ascending triangle, but really at this point in time, I think you need to be very cautious. The market is a little stretched, so you don’t want to put a huge position on, but certainly any chance you get at a pullback to start buying is probably going to be attractive. The 50-day EMA sits at that $2,400 level, and then again, we have a major uptrend line sitting right around there as well.

So, it all leads to higher gold prices from a technical analysis standpoint. And I think we’ve got a situation here where traders will continue to look at this through the prism of protection from geopolitics, interest rates dropping, and of course central banks out there continue to buy gold hand over fist. Because of this, I think there is a natural instinct to get long of this market overall.

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