Gold Forecast: Gold Continues To See Buyers On Dips

• Gold initially plunged during trading on Thursday as we continue to see a lot of noisy behavior.

• Initially during the trading session, we saw interest rates rise in America, and that put quite a bit of downward pressure on gold.

• But we ended up seeing the rates fall after that, and it ended up showing signs of life in the gold market, bouncing from the 200-day EMA.

This is a market that I think, given enough time, probably has to go looking to the $4,600 level. The $4,600 level is a level that has previously been support and resistance, so I think it would make quite a bit of sense that we would see a lot of choppy volatility in that area.

Interest Rates and Technical Resistance

If we were to break above the $4,600 level, then it's possible we could challenge the 50-day EMA, but I don't see that happening without the interest rate markets really starting to show lower yields. We are dropping during the day, that's obviously a good sign, but we probably aren't quite there yet to get overly bullish.

Ultimately, I do like this as a market that we get involved in and gradually go higher over the longer term, but I also recognize short-term volatility, and noise will continue to be a massive issue.

If we were to break down below the 200-day EMA, that could really send the gold market much lower, perhaps down to $4,000. In that environment, I would expect to see interest rates really start to climb in that situation. At this point, almost nothing would perform well.