Gold Price Forecast: The Strength of Gold Heading into the FOMC Meeting

Gold Price Forecast Continuing Strength

The gold market has rallied slightly during the early hours on Wednesday as we continue to see a lot of noisy behavior out there when it comes to the gold market and precious metals markets in general. With that being said, it is worth noting that we have a lot of headwinds just above, but we also have a lot of headlines over the next couple of days.

Impact of Upcoming Central Bank Meetings

After all, we have the Federal Reserve meeting late on Wednesday, which obviously will have a massive influence on this market, but we also have the Bank of England on Thursday and the Bank of Japan on Friday, which will still have a certain amount of influence as well. While the Fed is the main story here, the reality is that all central banks in the G-10 can move the market.

Market Sentiment and Key Levels

It’s obvious that the market is extraordinarily bullish, and therefore, I do like the idea of buying dips. At this point in time, I think we have a situation where the $2,540 level underneath will be potential support after it was significant resistance. On the upside, if we can break above the $2,600 level, then I think this market could really start to go much higher. I have no interest whatsoever in trying to short gold.

Factors Influencing Gold Prices

After all, I do think that the interest rate situation, the fact that central banks around the world are buying gold, and the geopolitical concerns around the globe—all these factors lead to higher pricing for gold.

Daily Economic Events

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