Gold Price Forecast – Gold Markets Continue to See Support

Gold Markets Technical Analysis

Gold markets rallied slightly during the early hours on Wednesday, but quite frankly, we’re just hanging around. The 50-day EMA underneath will offer a bit of support, so pay close attention to that and it is sitting just above the $2,300 level, which of course is a large round number that a lot of people will be paying attention to. It’s the bottom of the overall range to begin with, and of course, like I said, it’s a big round number.

If we were to break down below $2,300, that could kick off a sharper decline, but I see massive amounts of support at various places underneath with the most obvious one being the $2,150 level where the 200-day EMA is rapidly approaching and where we had seen previous support. On the upside, if we can break out above the $2,365 level, it’s likely that we could go looking to the $2,400 level and then eventually the $2,450 level.

I do think gold has plenty to think positively about it, not the least of which would be geopolitical concerns as the world seemingly is trying to march towards some type of major conflict between the United States, NATO, and Russia. And then of course we have the borrowing, the profligate spending by countries around the world, again involving the United States, borrowing a trillion dollars every 90 days. Sooner or later, that adds up to real money.

With this being the case, it is a market that I like buying dips, but it just looks like right now, we’re trying to work off some of the excess froth that has been thrown into this environment.

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