Gold Price Forecast – Gold Continues to Grind -

Gold Markets Technical Analysis

Taking a look at the gold market you can see that we are trying to get to the $2040 level. If we can break above there, then we could go looking to $2060. Underneath we have the 50 day EMA that comes into the picture to offer a little bit of support also. So, with all that being said, I do like the idea of buying the dips as they occur. The 50 day EMA, I think being broken then opens up the possibility of a move down to the $2,000 level, which is the major floor in this market.

Gold is right in the middle of this overall consolidation, so really at this point, I think the $2,075 level above is your ceiling. If we can break above there, then gold can go much higher. I think at this point in time, we are likely to see the market at least try to get there, but who knows how long it’ll take. It could be something that happens rather rapidly, or it could be more of a grind. Judging by the last three months, I would say it’s more likely going to be a grind than anything else.

Keep in mind, all of the same things are moving gold. We have geopolitical concerns, but I think more immediately we have what’s going on in the bond markets and whether or not yields are rising or falling. As they fall, it does make gold more attractive. Pay attention to the US dollar, it can have an influence as well, but really that correlation comes and goes. The market has been in an uptrend for the last three months, and now it looks like we’re trying to work off some of that froth. I expect a lot of choppy and noisy behavior in this area, but I would not be surprised at all to see the market reach to the top of the range yet again. At the end of the day, I do think gold takes off later this year but right now we just are not ready to see it happen.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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