Gold Price Analysis – Gold Continues to See Buyers on Dips

Gold Technical Analysis

The gold market fell pretty significantly during the trading session on Tuesday in the early hours as we continue to look for some type of movement in this market, and as a result, we are in a bit of a “holding pattern.”

Ultimately, I do think this is a market that will continue to find plenty of buyers in multiple areas, not the least of which will be the $4,800 level followed by the 50-day EMA and the $4,600 level.

I think we’re seeing gold start to overtake silver at the moment as the market du jour for metals traders, which is a little bit more in the purview of normalcy. This market typically does fairly well, but the momentum has been overdone, at least until recently.

Long-Term Bullish Outlook

If we can break above $5,150, then I think it opens up a move to the $5,500 level. And I think eventually we will get there, but this is going to be more or less a buy-on-the-dip scenario in the gold markets.

I think it’s got a lot of work to do to stabilize and make people comfortable again after the massive blowout that the buyers had to face several weeks ago, blowing up an unknown amount of trading accounts.

With that, I remain bullish longer-term. I just recognize that perhaps you’re probably going to have to be really patient. Gold looks like it’s going to start behaving very much like gold traditionally does, meaning that yes, it’ll rise, but we won’t have this meteoric rise right away.

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