Gold Forecast Today 02/04: Rallies Offer Buying Zone (Chart)

(MENAFN- Daily Forex)

• Gold markets rallied early during the trading session on Tuesday, but gave back quite a bit of the gains as it looks like exhaustion is starting to set in.
• After all, it makes a certain amount of sense that we will eventually have to pull back, because gold had shot straight up in the air, gaining about $150 and just 3 or so sessions.
• Because of this, sooner or later somebody out there would try to take profit after this big move, and I think ultimately this is something that we will have to keep in the back of their minds.

Ultimately, gold will continue to be in demand, mainly due to the fact that the tariff wars will probably cause chaos, and of course the global economy is potentially slowing down as people are trying to protect their wealth. While I do believe that gold goes much higher , I think we have a situation where it's very unlikely that he can't simply go straight up in the air forever. After all, sooner or later you have to get some type of pullback in order to attract new traders.

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The technical analysis for gold is obviously very bullish, as we have seen buyers jump into this market for some time now, and the fact that we are a little bit exhausted during the Tuesday session doesn't necessarily mean anything, it's just a pullback waiting to happen. Market participants will continue to look at pullbacks in the gold market as potential value, and I do think that this becomes more or less a“buy on the dips” type of market. The $3000 level is more likely than not going to be a massive“floor in the market” from what I can see, and therefore we have a situation where the time we get near the $3000 level, it's likely that traders will try to take advantage of value there.

EURUSD Chart by TradingView

I have no interest in shorting gold, and therefore I will be very hesitant to do anything but buy dips in this market. In fact, that has served me quite well for the last several months, and I just don't see how that changes. Furthermore, we also have the bullish flag that recently printed, with a“measured move” of a $3300 take profit.

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