Gold Price Analysis – Gold Continues to Look to the $5,000 Level Above

Gold Technical Analysis

The gold market finds itself somewhat choppy and sideways during the trading session on Friday as we are sitting just a bit below the psychologically important $5,000 level. The $5,000 level of the course is a large, psychologically important number to the market due to the headlines that it will create across the markets and news in general.

For a while now, we have been talking about $5,000 gold, but we didn’t expect it to be at the end of January. That was more of a summertime thought for me a few months ago. At this point, short-term pullbacks offer buying opportunities, and I do think gold eventually does pull back.

Buying Value

Once it does, I will be looking to buy the right-hand side of the V, especially if it is near the $4,800 level or maybe the $4,600 level. If we do just blow through the $5,000 level, and that is possible, then we enter no man’s land, but quite frankly, we have been in no man’s land for quite some time. This is something that you have to be comfortable with if you are trading metals at this time.

On that breakout, I think you would probably have more of a squeeze towards the $5,200 level, but I prefer to buy gold when it is on sale, meaning that I want to see pullbacks in order to take advantage of lower pricing on the bounce, showing that we could have a real chance at turning things around and continuing the longer-term uptrend that has been so strong for several months now. I have no interest in shorting this market at the moment.

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