Gold Price Forecast – Gold Continues to Show Strength

Gold Markets Technical Analysis

The gold market initially pulled back just a bit during the trading session on Monday, but it does look like the $2,400 level is going to continue to offer a bit of psychological support, if nothing else. You can see that we initially pulled back a bit, only to turn around and show signs of life. The $2,450 level above is more likely than not going to be a little bit of a short term resistance barrier. And of course, people will be paying close attention to it. If we can break above that level, then it’s likely that we will get to the $2,500 level.

Any move below 2400 would probably just be more of the same. It would be an indictment on the attempted breakout, and it would suggest that we are just simply going to head right back into the previous consolidation. This is a real possibility, but we’ll have to see how that plays out. For me, the $2,300 region is a major support level that we will have to pay close attention to what’s going on when we get down to that area on any selloff.

That being said, it certainly looks like we have a lot of resiliency here. And I do think that this is a market that suggests that it’s probably only a matter of time before we do breakout, to the upside. If we get falling rates, that will help gold. But we also have geopolitical tensions, which most certainly helps gold. And then of course, we just have the overall trend that’s been bullish for several months now.

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