Gold (XAUUSD) Price Analysis – Gold Continues to Chop Back and Forth

Gold Technical Analysis

Gold markets initially fell during the trading session on Friday in pre-market trading, but they have since shown themselves to be somewhat resilient. With that being the case, I think you’ve got a situation where if we can break above the $3,375 level, we really could take off to the upside and perhaps go much higher. At that point, I would anticipate gold trying to get to the $3,500 level. On a short-term pullback, I think the $3,300 and the $3,200 levels offer support.

And ultimately, I think you have to look at this as a situation that shows itself to be more a buy on the dip than anything else, as there are a lot of questions about the overall global economy and of course, geopolitics. With that being said, I am bullish, but I also recognize that we might be noisy from time to time. In this environment, I do believe that you have to be very cautious. I do recognize that you are looking at a situation where the market has rallied pretty significantly over the last couple of years.

So, some sideways action here does make a certain amount of sense. I do not want to get bearish in this market until we break down below the $3,000 level, which is something that is not going to happen anytime soon. I do believe that this continues to be choppier than anything else. I do like buying dips. I don’t have any interest in trying to fight the trend, at least not yet. And I do believe that eventually we reach the $3,500 level and then break out above there and continue to go much higher.

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