Gold Price Forecast – Gold Continues to See Upward Momentum

Gold Markets Technical Analysis

The gold market rallied again during the early hours on Monday as we continue to see a lot of upward trajectory. Quite frankly, gold has really no reason whatsoever to fall for any significant amount of time, other than the fact that sooner or later somebody will have to take profit. After all, gold has a ton of massive reasons that continue to go higher. The first one, of course, is geopolitics, which obviously is a bit of a mess at the moment. So, people look to gold for protection.

Furthermore, they also pay attention to bond yields. And if yields go down, that’s good for gold. That’s because the storage cost of owning gold isn’t as damaging as it could be in an environment where you get higher bond yields, and you just own paper. But perhaps more importantly, I think it’s the central banks around the world buying gold, especially a lot of the Asian central banks that will continue to offer a little bit of momentum.

Short-term pullbacks at this point in time continue to see plenty of support underneath, especially near the $2,675 level, and then again at the $2,600 level, especially now that the 50-day EMA is approaching that level. All of this being said, the one thing that you have to look at in the chart and agree is that we’re in an uptrend and we have a lot of momentum. It is a strong performer. At the end of the day, it really doesn’t matter why. You just have to trade what you see and what reality is. And the reality is that gold is more likely than not going to eventually find itself at the $3,000 level.

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