Gold Price Forecast – Is Gold Ready to Pull Back?

Gold Markets Technical Analysis

The gold market initially tried to rally during the early hours on Wednesday but gave up the gains as it looks like we are still seeing quite a bit of bullish pressure, but it also looks like we are getting a little stretched. I’ve been looking for some type of pullback in order to add to an existing position and we may get it over the next couple of days.

That does make a certain amount of sense considering we have seen gold rise about $130 an ounce over the last 10 trading sessions or so. Really at this point in time, I think the likelihood of a pullback is pretty high, but we could continue to go higher. The question of course is whether or not you really want to chase the gold market after the big move it’s made. It’s difficult to do and the only way you can do it is if you use a very small position.

So quite frankly, if you are not already long of gold at this point in time, you have to wait for some type of pullback to get any value whatsoever. Remember, markets can run straight up in the air and sometimes they’re almost impossible to enter. We’re not quite to that point yet, but I do think that the US dollar is a little oversold and the gold market is a little overbought. We may have a bit of a correction, which I look at as a potential value play just waiting to happen with the $2,530 level as your floor in the market at the moment.

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