Gold Price Outlook – Gold Continues to Bounce Around on Thursday

Gold Technical Analysis

The gold markets have gone back and forth during the trading session in the early hours of Thursday, as we are sitting on top of an uptrend line. The $4,000 level offers a bit of support, and we have the 50-day EMA sitting just below there. All things being equal, this is a market that eventually will try to bounce. But if we were to break down below the 50-day EMA, which is roughly $3,960, there is a chance of this market dropping fairly significantly.

As of late, it has been interesting due to the fact that we shot straight up in the air with a lot of volume, then fell with even more, bounced again with rising volume, but not as much as the first rally, and now it looks like we are losing volume again. If this divergence keeps up, it could be a topping sign. We will just have to wait and see whether or not that is the actual case here.

At least for the time coming up, the long-term trend does not necessarily fail to continue to the upside. Even if we do break down, given enough time, short-term pullbacks open up the possibility of value. But watch that $3,960 region because it is crucial. If we rally from here, the $4,200 level could offer a bit of resistance as it is a large, round, psychologically significant figure and an area where we have seen recent resistance. This could be the top, but we cannot be sure quite yet. Breaking it would be a very strong sign to say the least.

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