Gold Price Analysis – Gold continues to See Buying

Gold Technical Analysis

The gold market has rallied a bit in the early hours of Wednesday as we continue to see a lot of noise and volatility, but the market continues to be one that I think a lot of value hunters will continue to chase as the uptrend is so apparent. And of course, we have plenty of fundamentals to drive the gold market higher. We have geopolitical tensions, which is almost always a good thing for gold. We have the trade war still, and then again, we have the actual central banks buying gold. That of course is a huge tailwind.

Technical Outlook and Key Support Levels

Ultimately, when you look at the technical analysis of this market, we have just broken out over the last couple of days and now it looks like we are trying to confirm that breakout above the $5,150 level. Even if we were to break down below there, I think you have a situation where the market is going to continue to see more of a buy on the dip mentality. I have no interest in trying to short this market anytime soon.

With that being said, I think you also have to keep an eye on the $5,000 level, which is a large round psychologically significant figure that people will be paying attention to. Even if we break down below there, we have the $4,800 level followed by the $4,600 level offering support. So, it is really not until we break through all of that that my overall analysis changes. We will have some choppiness along the way, but that choppiness should give us opportunities to pick up gold on the cheap.

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