Gold Price Forecast – Gold Continues to Struggle With 2900 USD

Gold Markets Technical Analysis

Gold markets have fallen a bit in the early hours on Wednesday as we await CPI, but more importantly, we may have gotten a little too far ahead of ourselves. We ended up forming a perfect shooting star for the trading session on Tuesday, and now it looks like we are trying to break down from that. If we do, that’s fine. It actually only makes gold that much more interesting to me because it had gotten so far ahead of itself. If you put on the Bollinger Bands, you can see we just pierced the Bollinger Bands, so we have been pretty stretched for a while now.

So, we could drop as much as to the $2,800 level, and I think that doesn’t change a whole lot. In fact, I’d be looking to buy it on some type of bounce. I would love to buy more gold. It’s just that right now, we had stretched so far that it’s difficult to chase it. On the other hand, we could just simply end up consolidating around the $2,900 level and going sideways for a while. That’s very possible as well. If we break the top of the candlestick on Tuesday, then we could see the market go racing to the $3,000 level, which I believe we will hit sooner or later regardless.

Nonetheless, expect a little bit of choppiness and perhaps even a little bit of a pullback, but I’ll be watching very closely if we get anywhere close to the $2,800 level for a bounce that I can start participating in. The 50-day EMA is all the way down at $2,735, but it is starting to curl higher, so we’ll have to see whether or not that comes into the picture over the next week or two as well.

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