Gold Price Analysis – Gold Continues to See Pressures from Both Sides

Gold Technical Analysis

The gold market initially rallied a bit during the trading session on Wednesday, only to turn around and show signs of weakness. That being said, I think we still have a situation where gold hangs out above the 5,000 level and as long as that is the case, it is bullish.

With the United States adding more jobs there is some speculation that perhaps the Federal Reserve will have to wait to cut rates. It looks like the rest of the market is starting to see that the US economy is not falling apart despite reports. With this being the case, I think you have got a situation where even if we do break below the 5,000 level, gold is in such demand that it is probably only a matter of time before it rallies anyways.

Price Targets and Market Volatility

I would look to buy on the dips, and I could see this market dropping all the way to $4,600 and still not changing much. On the other hand, if we break out and can close above $5,100, it opens up a move to $5,400.

I expect a lot of choppiness and, quite frankly, would love to see a lot of sideways action. That just leads to a healthier market. We cannot have these massive swings and straight-up in the air type of moves that we have had as of late for very long. Eventually, investors get exhausted, and they just choose not to play the game. I think that is part of what has happened here as volume has most certainly dropped off. A little bit of a range probably goes a long way here.

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