Gold Price Forecast – Gold Takes Off After ECB

Gold Markets Technical Analysis

The gold market rallied rather significantly during the trading session on Thursday as the ECB has cut rates and a unanimous decision, and that seems to have people looking for that cheap money again. All things being equal, this is a market that I think will continue to be very noisy, but I also recognize that we have a scenario where traders are looking for some type of safety in a market that quite frankly is not very convincing from a risk spectrum standpoint. Ultimately, the markets are going to continue to be nervous, so therefore it makes quite a bit of sense that we would see gold attract a certain amount of inflows at this point in time.

With that being the case, I think you have to understand that this market will continue to be very noisy, but it’s obvious that we are in an uptrend and let’s be honest here, I don’t think that will change anytime soon. With this, I like the idea of buying dips and we’ll be looking to this market to take advantage of any pullback that we see.

The 20 day EMA, the 50 day EMA and the 200 day EMA are all lining up the same way. And the $2,530 level for me at least is going to be support going forward. I don’t really have a target at this point. This is just a buy and hold asset, but you do need to be reasonable with your position sizing because quite frankly, risk appetite’s all over the place.

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