Gold Price Forecast – Gold Continues to Consolidate at Highs

Gold Markets Technical Analysis

The gold market pulled back slightly in the early hours on Wednesday, as we continue to consolidate after a pretty significant shot higher. At this juncture, I do believe that the $2,600 level underneath will continue to be support, and I also recognize that there are a handful of reasons why this market should continue to go higher over the longer term. The first one, of course, is the fact that central banks around the world are cutting rates and more specifically the Federal Reserve is, and that has gold bugs excited.

On the other hand, we have plenty of geopolitical issues out there that could drive the price of gold higher, and that’s not to be dismissed very lightly because, quite frankly, there are a few things that are safer than owning gold. Short-term pullbacks I do think continue to get bought into as value, as has been the case for some time now.

Above the $2,700 level, the market then goes much higher, perhaps reaching towards the $3,000 level over the longer term. When I look at the chart, I can see that we are in the midst of perhaps forming a bit of a bullish flag, so that could also come into the picture as well. So ultimately, I think you’ve got a market that goes much higher, but it just got a little bit ahead of itself in the short term. This happens from time to time and therefore a bit of profit taking makes a bit of sense.

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