GLD

Gold Price Forecast – Gold Continues to See Buyers Jumping Into The Market

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Gold Markets Technical Analysis

You can see gold has rallied above the 50 day EMA during the trading session and it now looks as if we are ready to go much higher. That being said, this is a market that has a lot of noise around it and of course you have to be somewhat cautious as to what you do with your position size anyway, after all gold does tend to be very noisy. So, with that being said, it’s likely that we have a scenario where short-term pullbacks continue to find plenty of buyers.

I think down here at the $2,000 level is a beginning area of massive support down to the $1,980 is something that you have to pay close attention to. The 200-day EMA sits underneath there as well. So, with all of that being said, it has to come in and technical traders will have to acknowledge that. On a move higher, the $2,060 level followed by the $2,075 level, both could cause major issues. But I think it is becoming apparent that the best strategy is buying on dips.

I don’t necessarily think that you want to chase it with a huge position, but the last couple of days, I have been telling you that this is a market every time it pulls back, the buyers get involved, and that’s what we continue to see. Pay attention to the 10-year yields in the United States because they will have a major influence on gold. The US dollar will have a major influence on gold and of course, geopolitical concerns, which there are plenty of, will continue to have a major influence on gold.

If we can clear the $2075 level, gold is going to take off. You can see the air pocket that we hit on December 4th when we had that wicked spike in early Asian trading. With that, I remain bullish, but I recognize it’s going to be pretty choppy. Make sure to be cautious with your sizing, but I think it is obvious that there is only one direction at this point.

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

This article was originally posted on FX Empire

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