Gold Price Outlook – Gold Continues to Bounce Around

Gold Technical Analysis

The Gold market has been pretty quiet in the early hours of Wednesday as we are waiting to see whether or not we have any real shot at continuing to higher or are we going to pull back? Ultimately, you do have to keep in mind that this is a market that has been very bullish previously, but recently we’ve ran into a little bit of trouble, and I suppose that makes a certain amount of sense considering that we have run so far in such a short amount of time, suggesting that the market might need to ‘work off the froth’ as markets tend to do.

With that being said, we are in the midst of consolidation, maybe an ascending triangle. So, I do like gold. I think the $3,500 level will eventually be targeted and perhaps allow the market to break out from there, but all things being equal, when we do, then you have the measure move of the consolidation for lack of a better place to put it. I call the bottom $3,200. So, this is the $300 range. If we were to break above the $3,500 level, then it would allow for a potential target of at least $3,800.

Ultimately, I do think this is a market that will have to sort out quite a few things, but there are enough external factors out there, I believe at this point, that will at least keep gold somewhat attractive and should keep the market positive overall. However, it is worth noting that the economic announcements may cause a bit of noise in the next few days.

For a look at all of today’s economic events, check out our economic calendar.