Gold Price Outlook – Gold Continues to Drift Lower but Finds Buyers on Dips

Gold Technical Analysis

The gold market has fallen pretty significantly during the session here on Thursday, but the $3,200 level looks as if it is offering some type of short-term floor. Ultimately, I think this is a market that is very much in an uptrend, so you don’t necessarily want to short the market, but you also have to recognize the fact that the market will occasionally have a pullback, and that, I think, is what we are looking at right now.

With that being said, I am bullish, but I’m waiting to see some type of bounce. It is probably worth noting that the Friday session is, of course, going to feature the jobs number in the United States, and that obviously will have a major influence on where we go next. Given enough time, I do think that gold will eventually find buyers unless, of course, we get some type of massive change in the tariff war situation, and of course, maybe the US dollar.

The US dollar had been oversold for a while, so it does make a certain amount of sense that eventually it gets a little bit back against a lot of currencies and gold. So, I’m just waiting to see whether or not we get enough momentum to the upside to get involved. If we break down below the $3,200 level, then I think you’ve got a real shot at the market trying to drop down to the 50-day EMA. That, of course, is an indicator that a lot of people watch, and you can see has historically been very supportive.

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