Gold Price Forecast – Gold Markets Continues to Consolidate

Gold Markets Technical Analysis

The gold market pulled back just a bit in the early hours on Thursday as we have found the $2,675 region to offer a bit of resistance. But I think at this point in time, the downward pressure is more likely than not going to be something that the $2,600 level absorbs. Even if we break down below there, the $2,530 level offers significant support due to the fact that the market previously had seen a lot of resistance there, so we have market memory, but we also have the 50-day EMA.

In general, I think this is a situation where the market continues to see plenty of upward momentum. And therefore, I think you look at short term pullbacks as buying opportunities and value to be found in the gold market. This allows you to take advantage of cheap gold. And after all, that’s the name of the game.

Gold should continue to rally based on interest rate cuts around the world, the shrinking US dollar, the geopolitical tensions that we see everywhere. And then of course, the fact that India, China and Russia are all buying gold as far as their central banks are concerned. So, there’s a natural bid in the market anyway. With all of that being said, I’m looking for an opportunity to buy gold on each and every dip. And I have no interest whatsoever in trying to short this market. Longer term, I do think we go looking toward the $3,000 level, but it’ll take a while to get there.

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