Gold Price Analysis – Gold Continues to Consolidate at Highs

Gold Technical Analysis

Gold markets continue to see a lot of back and forth action during the trading session here on Friday in the early part, at least. Really, at this point in time, I think what we are looking at is a market that is trying to come to grips with being at $4,600. I do think we eventually go higher, even if we were to pull back.

A short-term pullback could send us all the way back down to the $4,400 level, and I really wouldn’t even think much of it. Based on the ascending triangle we broke out of previously, we could go looking to the $4,900 level.

Trying to Get to $5,000

I think this is a situation where, sometime this year, they’re going to try to get to $5,000. Why wouldn’t they? So, I have no interest in shorting Gold. I do believe that pullbacks offer value in a market that’s being collected by central banks and, of course, driven by the massive amount of debt around the world. Not to mention the geopolitical issues. There are plenty of reasons right now to think that Gold should go higher over the longer-term.

With that being said, and of course just the simple technical analysis, I will not short Gold, and I do think we will go higher. It’s just a question of whether or not we get a catalyst to make a fresh new high or if we have to pull back to find value first and then see momentum carry us to the upside, maybe even as high as $5,000 in a few months.

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