Gold Price Forecast – Gold Markets Continue to Find Buyers

Gold Markets Technical Analysis

Gold markets continue to see upward pressure, but at this point in time, we still see the same ceiling. All things being equal, the market is looking at the $2,525 level as a bit of a barrier. But if we can clear that, then I think we’ve got a situation where the market is going to continue given enough time and of course the gold market is in a bit of a perfect scenario right now as central banks around the world are cutting rates and that of course helps because the cost of storing gold suddenly isn’t as expensive in the minds of traders who normally would just as soon part cash in a bond and collect the interest payments.

So that’s one thing that will drive gold higher, but short-term pullbacks, I think at this point in time, could be buying opportunities as well, with the $2,500 level underneath offering a potential support level based on psychology and the fact that it has been fairly noisy. If we break down below there, then we have the 50-day EMA and the uptrend line both coming into the picture to support gold as well. In other words, I think no matter what happens, I’ll be a buyer, although I recognize it won’t go straight up in the air. It is a bullish market. Where do we go from here?

Don’t really know, but I would be willing to say that $2,600 is a very realistic target. Gold, of course, is getting benefits from not only interest rates dropping, but the geopolitical concerns, which are not getting any better. Uncertainty out there, of course, helps gold as well. So, it all ties together quite nicely for a market that should rise. And then ultimately you have to keep in mind that the Indians, Chinese and Russians at the very least are stepping in and buying gold via their central banks. So, all of it leads to higher pricing.

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