Gold Price Forecast – Gold Pulls Back to Start The Week

Gold Markets Technical Analysis

The gold market has pulled back just a bit during the early hour on Monday, as we continue to see a lot of noisy behavior, but I do think at this point, the market has gotten a little overextended and that is very likely the biggest problem. After all, we still have plenty of reasons to believe that the gold market is going to go higher, including things like the ratcheting up of tensions in the Middle East, the interest rates around the world falling, central banks around the world buying gold, and then quite frankly, just the technical analysis and the trend of the market itself.

Momentum alone should drive this market higher given enough time, but momentum can only carry a market for so long before people have to take profit and I think that’s essentially what they’ve done here. A move below the $2,600 level could open up a drop to the $2,530 level, where the 50-day EMA presently resides, and it should offer significant support. Regardless, I think a short-term pullback is necessary, but I also think it’s an opportunity.

I’ll be looking at the first signs of a bounce to get involved as we go looking to the $3,000 level over the longer term. I don’t necessarily think that’s easy to get there, but I do think that’s probably where the market’s trying to get to over the next several months. After all, it’s not as if any of the fundamental reasons driving gold higher are going anywhere anytime soon.

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