Gold Price Forecast – Gold Markets Continue to Raise Higher

Gold Markets Technical Analysis

The gold market rallied again during the early hours on Friday as we continued to build upon the massive move higher from Thursday. All things being equal, this is a market that I think continues to see a lot of buyers jump into it on any pullback. And let’s be honest here, there are a massive amount of reasons out there for the gold market to continue rallying. The most obvious one is that central banks around the world are cutting rates. And at this point, we are expecting the Federal Reserve to cut interest rates on September 18th, which of course is a major boon for gold.

We also have a lot of concerns about geopolitics with wars in the Middle East and Ukraine and numerous African conflicts. It does make a certain amount of sense that some traders choose to hold gold for safety. We also have central banks around the world buying gold hand over fist, mainly in Asia, but they are buying quite a bit of it. And that of course puts a little bit of a bid on the market regardless.

I have no interest in shorting this market, and I think at this point in time, the $2,500 level is going to be the floor for the overall upside. As far as a target is concerned, I thought at one point that 2,600 was a reasonable target, but the reality is we may even get there by the time we go into the weekend at this rate. So, I do think we are going much, much higher.

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