Gold Price Analysis – Gold Continues to See 5K as Fulcrum for Price

Gold Technical Analysis

The gold market has rallied slightly during the early part of the trading session on Friday as we continue to hang around the $5,000 level. We do get inflation numbers today, which could have a major influence, but it looks to me like gold is likely to try to pull back towards support with the $4,800 level offering a short-term floor, and then after that, we have the 50-day EMA that offers support as well.

If we turn around and break above the $5,000 level, then it is likely that the market could go looking to the $5,100 level. Anything above there kicks off a continuation of the longer-term uptrend. Keep in mind that gold has a bit of a bid due to central banks and of course debt issues around the world.

Central Bank Demand and Technical Levels

Central banks around the world are not only collecting gold, but there are several out there that are expected to cut, the most important one of course being the Federal Reserve.

Overall, the technical analysis suggests that we might be in the process of making a lower high, but the question is will we make a lower low, and we will not confirm that until we got below the $4,400 level.

Ultimately, we have the uptrend line, the previous upside momentum, but we have that horrific, traumatic candlestick from a couple of Fridays ago that I think a lot of people are still having trouble coming to grips with. Overall, I do think we will go higher over the longer term, but expect a lot of noise in the short term.