Gold Price Analysis – Gold Plunges Early on Friday to Test Momentum

Gold Technical Analysis

Gold markets plunged toward the $5,000 level, only to find a bit of support there, but gold has just made a sudden and startling move as traders continue to remain bullish on gold.

Clearly, that was a shot across the bow for those who were just coming in and piling into gold. The recent move is the profit taking following a deal in Washington to prevent a US government shutdown, which somewhat helps the sentiment, which has sucked some of the immediate risk-off premium out of the market.

That being said, there are still aggressive central banks out there buying gold quite hand over fist, and of course, we have geopolitical friction out there, such as trade tariffs, the tensions between the United States and Iran as a carrier strike group or a couple of them are deployed in the Middle East, and then of cours,e the volatility in general.

Market Support and Outlook

$5,000, if we can stay above there on the daily close, I think that will make a big difference, all things being equal. This is a market that I probably have to be a little bit cautious today with, but if we can stay above $5,000, that’s a good sign for next week, I believe.

With this, I remain bullish, but I also recognize that we may get another wave of volatility during the New York session as well. The way we close the Friday session will be vital, and something that you should be paying attention to.

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