Gold Price Analysis – Gold continues to See $5000 as Important

Gold Technical Analysis

The gold market has fallen a bit during the early hours on Monday, but it is trying to hang on to the $5,000 level. The $5,000 level, of course, is a large, round, psychologically significant figure and an area that has been important multiple times. With this being said, I think we are continuing to see a lot of questions asked about gold, mainly due to what is going on with the U.S. Dollar. After all, the U.S. Dollar is a major counterbalance to gold at times, and that does seem to be what we are seeing right now.

With this being the case, I like the idea of taking advantage of cheap gold, but I also recognize that you have to understand that the market is not necessarily going to turn around and be massively bullish. I think this is more of a grind to the upside than anything else, but there are plenty of reasons to believe that gold will continue to strengthen long-term. It just won’t necessarily be the type of momentum that we had seen previously.

Long-Term Strengthening Potential

If we were to break down below the 50-day EMA, which is presently at the $4,928 level, then maybe we have to set our sights on lower levels to bounce from. I think the floor, though, is at the $4,600 level. Anything below there would change the entire trend. I don’t see that happening right now, though. I do think we will eventually try to get back to $5,500, where we peaked recently to make an all-time high in this market.

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