Gold Price Forecast – Gold Continues to Stabilize

Gold Markets Technical Analysis

The gold market initially pulled back just a bit during the trading session on Tuesday but continues to see the 2400 level be an area that people are watching quite closely. With that being the case, I think you’ve got a situation where you have to believe that this market will eventually continue to rally and then turn around and show signs of life. Over the longer term, I see no reason why gold won’t go looking to the highs again, which is near the $2,500 level, which obviously has its own psychology attached to it.

But if we do break above 2,500, then it is very likely that we will see massive follow through and traders jumping in to take advantage of the momentum. Keep in mind that interest rates around the world continue to be threatened. It does look like central banks will be cutting sooner or later. There are central banks out there buying gold hand over fist, so that helps also and then, of course, we have a lot of geopolitical concerns, so it all ties together for a potentially explosive move in gold to the upside.

I have no interest in shorting and even if we did break down from here, the 50-day EMA and an uptrend line both come into the picture to offer support for this market. Gold is a market that’s been very bullish for some time, and every time we get a pullback like this, the buyers come back. It looks like it’s just more of the same.

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