Gold Price Forecast – Gold Drops on Wednesday

Gold Price Predictions Video for 08-02-2024

Gold Markets Technical Analysis

Gold has drifted a little bit lower during the trading session on Wednesday, but at this point in time, it’s still pretty much looks the same. It looks like a market that just doesn’t really have anywhere to be in the short term, but in the longer term I still think it becomes very positive. With this, you are probably going to have to be very patient.

To the upside, the $2060 level I believe is going to be crucially important, and therefore I am paying close attention to it. If we can break above there, then the $2075 level would be your next target. Anything above $2075 becomes buy and hold as gold suddenly would find itself breaking out quite nicely.

Underneath, we have the 50 day EMA that should continue to offer plenty of support. And underneath there, we have the crucial $2,000 level. The $2,000 level swings down to the $1,980 level, which I think is the absolute floor in the market and one that traders will be paying close attention to. With that, anything below that area, I think really starts to attract a lot of attention and we have to consider that perhaps the overall trend is busted, but right now that doesn’t look likely to be the case, especially with central banks around the world ready to cut rates.

So I like gold for that reason and, of course, for geopolitical reasons as well. There are plenty of things out there to be worried about so, with that, gold I think is still something that you need to be holding and also buying on dips.

With so many potential catalysts, I think gold is something that you should hold a certain amount of, but it is not an asset that should make up a huge portion of your portfolio due to the inherent volatility that it has so often. Nonetheless, I think we are going to go much higher before it is all said and done this year.

For a look at all of today’s economic events, check out our economic calendar.