Gold Price Outlook – Gold Continues to Find Buyers on Dips

Gold Technical Analysis

Gold markets have rallied ever so slightly during the trading session on Wednesday in the early hours as traders continue to bet on a weakening US dollar and perhaps more importantly on the Federal Reserve loosening monetary policy eventually. That being said, this is a market that I think given enough time will probably have to come to grips with the idea of the $3,500 level above being a major barrier. If we can break above there, then it opens up a $300 measured move to the $3,800 level. Short-term pullbacks have plenty of support near the 50-day EMA as well as the $3,300 level. After that, then we have a floor in the market near the $3,200 level below.

Over the longer term, I do anticipate that there will be plenty of gold buyers, not only due to central bank purchasing and Federal Reserve interest rate policy, but just because of all the uncertainty that we see everywhere via tariffs, via geopolitical conflicts, there’s plenty of reason to believe that gold goes to the upside. We’ve seen a couple of months’ worth of sideways action, but really, I think at this point, you’re looking at gold as a market that’s trying to work off some of that massive excess froth from the run over the last year and a half or so. With this, I prefer to buy dips. I continue to remain bullish on gold overall.

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