GLD

Gold Price Forecast – Gold Continues to Rally on Wednesday

FXEmpire.com -

Gold Markets Technical Analysis

You can see that the gold market is approaching the $2,030 level, which is essentially the middle of the overall consolidation area that we had been in for some time. The market is well above the 50 day EMA and it does look like it is trying to go higher or short-term pullbacks I think are buying opportunities. And I do expect to see pullbacks as buying opportunities with the $2,000 level underneath offering a significant support level that extends down to the $1,980 level, which is also in turn backed up by the 200-day EMA.

Keep in mind that gold is very volatile and it does make a certain amount of sense that we are just jumping back and forth. All things being equal, a short-term pullback could be an opportunity to get long again. On the other hand, if we just simply go higher from here, then we go looking to the $2,050 level, possibly even as high as the $2,075 level, which is the top of the longer-term consolidation area. This is, without a doubt, one of the most important levels on the longer-term charts.

If we can break above there, then the market becomes much more of a buy and hold situation where FOMO takes over and it pushes your position higher. In the short term, every time this market pulls back, I think there will be buyers, and you should keep an eye on the US dollar, the interest rate situation in the United States, and of course, central bank actions around the world. Keep in mind that central banks are going to be loosening monetary policy this year and on top of that, another tailwind is the fact that central banks are net purchasers of gold around the world, and some of them quite heavily so. With that being the case, it is a market that I think does continue to go higher despite the fact that we are getting a little stretched in the short term.

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

This article was originally posted on FX Empire

More From FXEMPIRE:

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

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.