Gold Price Outlook – Gold Attempts Even Further Gains

Gold Technical Analysis

The gold market initially surged higher during the trading session on Wednesday but has given back quite a bit of those gains. This is almost a repeat of yesterday, as Wednesday is starting to look a lot like Tuesday, as we shot straight up in the air and then gave back those gains fairly quickly.

But, it is worth noting that later in the day on Tuesday, we had seen quite a bit of bullish pressure again. I do not know if that is how this plays out, but what I do know is that I am not shorting gold.

Market Outlook and Support Levels

It does make sense that gold struggles a little bit, mainly due to the fact that we have the holiday. With that being the case, a little bit of profit-taking makes a lot of sense. Why wouldn’t you, if you have been in gold for months, and it is the end of the year, and you have to report to your clients? Take some money out of the market and show a profit because, after all, just because you are positive doesn’t mean you get to take the money home, and that might be part of what’s going on here.

A pullback from here could test the $4,400 level. I think that is an area that would be significant support, based on previous resistance and based on the triangle we just broke out of. We could see this market go as high as $4,900, and quite frankly, with the geopolitics of the world, central banks loosening monetary policy, massive debt, and central banks buying gold, all of that makes that a very real possibility. When we pull back and bounce, I am willing to buy, although I recognize the next couple of sessions when we are open will probably be pretty thin.

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