Gold Price Outlook – Gold Continues to Drop on Friday

Gold Technical Analysis

The gold market has dropped pretty significantly to reach towards the 50 day EMA. The 50 day EMA, of course is an indicator that a lot of people will watch, but regardless, the market here has shown itself to be somewhat interesting as we had an inner consolidation area between the larger consolidation area. With that being said, the market should continue to respect the $3,200 level underneath as a major floor. If we were to break down below there, that would change a lot of things, obviously. But right now, that doesn’t look very likely.

To the upside, the $3,500 level is a major resistance barrier. And really, I think at this point in time, we’re just chopping back and forth. It’s very likely that we could drop even further and then bounce again. I like buying dips and I don’t have any interest in trying to get short of this market, even though I fully anticipate that it will drop.

A little bit of patience will probably go a long way because, quite frankly, we’re in an uptrend. So, I don’t want to fight that. And I think this is just the gold market, either fairly quiet in the summertime, because this time of year is fairly quiet, or we’re trying to work off some excess froth. Either one of those are very possible at this point. At this juncture, though, I don’t think it means anything other than we’re just drifting sideways more than anything else. Eventually, I expect to see the market break above the $3,500 level, perhaps reaching towards the $3,800 level.

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