Gold Price Forecast – Gold Continues to See Volatility

Gold Markets Technical Analysis

The gold market initially shot higher during the early hours on Wednesday but gave back the gains as it looks like we are willing to chop around and try to sort out what to do with ourselves. Quite frankly, at this point, it is a buy on the dip market, so there’s no real reason to think about shorting this market as we broke pretty significant resistance during the previous session. Underneath, we have massive amounts of support near the $2,400 level, but I don’t even think we dropped that far before buyers will jump in and take advantage of cheap gold.

Gold is likely to eventually go looking towards the $2,500 level, as there are plenty of geopolitical concerns out there that could come into the picture. And then of course, we have to question whether or not central banks will start to cut rates around the world. So far, that does look to be the case. Central banks around the world are also buying gold, so that puts a little bit of a floor underneath it anyway. So all things being equal, this is a very bullish market that I am willing to take advantage of every time gold gets a little bit cheaper.

That doesn’t necessarily mean that you jump in right away, but pullbacks are looked at as potential opportunities. That’s probably the best way to trade this market going forward as it has proven itself to be strong yet again, and the overall momentum certainly seems to favor the upside.

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