Gold Price Forecast – Gold Pulls Back Early on Monday

Gold Markets Technical Analysis

The gold market initially did rally a bit during the early hours on Monday, but as you can see, turned around to fall pretty significantly. However, since then we have seen the gold market bounce a bit. So it’ll be interesting to see how this plays out over the longer term. In general, this is a market that’s been in an uptrend for quite some time, so I just don’t see why anything’s going to change here and if that’s going to be the case, then really at this point in time, you are looking at short-term dips as potential buying opportunities.

The 50-day EMA could very well end up being support near the $2,645 level. And then after that, you have a pretty significant support level in the form of a trend line and then the $2,500 level. So, I do think it is only a matter of time before you start buying gold. And I certainly don’t have any interest in shorting.

Geopolitics continues to make this a bit of a one-way trade over the longer term. And then of course we have the interest rate situation around the world as central banks are doing everything they can to cut rates, while at the same time, profligate spending from various countries around the world continues to support gold. We also have central banks in central and southeastern Asia buying gold and that puts a little bit of a natural bid in the market. With all of these things being said, I like the idea of buying gold, but we had just had five positive days in a row, so a little bit of a pullback does make a certain amount of sense.

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