Gold (XAUUSD) Price Outlook – Gold Continues to Find Buyers on Dips

Gold Technical Analysis

The gold market initially pulled back during the trading session on Tuesday but then turned around to show signs of life again as we continue to see support near the $3,200 level. All things being equal, this is a market that I think given enough time will try to break out to the upside but we have a lot of noise here and, quite frankly, it wouldn’t surprise me if we spent some time going sideways like we have.

The 50-day EMA is an indicator that a lot of people will be paying attention to as it is fairly reliable support. Furthermore, we’ve been in an uptrend for quite some time anyway, so I don’t really have any reason to think that we should be getting short. Even if the market were to break down below the lows of the previous week, I think the $3,000 level also offers significant support.

So, with that being said, I do think you have a situation where traders will continue to try to find value, and they should, as gold will continue its long historic run higher. Even if we do lose the trade tariff momentum, due to the fact that people run to gold to protect their wealth, there are a lot of concerns about sovereign debt as well. So, with that, I think you’ve got a situation where gold still has plenty of upward trajectory over the longer term, but right now we’re just simply trying to work off some of the excess.

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