Gold Price Forecast – Gold Market Drifts Higher in Holiday Trading

The gold market managed to drift a little higher in the shortened holiday session on Monday, as Martin Luther King Jr Day had the futures markets closed for about half of the session. At this point, the market will look like it will break out of consolidation.

In this article:

• Gold

+0.50%

Gold Markets Technical Analysis

Gold markets have been a little bit choppy in the early hours of Monday, but keep in mind, it’s also Martin Luther King Jr. holiday in the United States and therefore, you’ve got a situation where the liquidity in the futures market would have been limited not only by volume, but also by time, as it wasn’t open for the entire session. So, with that, you can only read so much into this. But it does look overall like the market’s trying to get above the $2,725 area, which if it does, it allows gold to continue going much higher.

Short-term pullbacks, albeit likely, should be thought of as potential buying opportunities as long as we can stay above the 50-day EMA. If we were to break down below there, then it could open up a move down to the $2,600 region, which has been support so far. There are plenty of reasons to think that gold goes higher, not the least of which is that we have massive amounts of debt around the world that is a major problem, but we also have plenty of geopolitical concerns as well.

I mean, those really haven’t gone anywhere. So, with that being said, it looks to me like a market that is trying to digest a lot of the gains from last year as it drifts sideways and overall, I do think that eventually it takes off to the upside. But the question is, how long does it need to work off the froth? The answer is, of course, you never really know. But there’s nothing on this chart that suggests that you should get short of this market anytime soon.

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