Gold Price Outlook – Gold Continues to Grind

Gold Technical Analysis

The gold market has rallied a little bit in the early part of the trading session here on Friday, but really at this point in time, we are just essentially stuck. And I think you have to look at this through the prism of a market that is sitting in the middle of a larger consolidation range, being the $3,200 level on the bottom and the $3,500 level on the top. The 50 day EMA sits right around the same neighborhood, and that, of course, is something that will attract attention. But I think the big story here is that we are stuck in the middle and we are in a traditionally quiet time of year.

Summer tends to be very lazy. And I think we have a situation where traders continue to be somewhat choppy. But I think if you’re a short-term trader, you could look at this as a back and forth type of market. If we can break above the $3,400 level, that would be the sign that we will test the crucial $3,500 level, an area that’s been important more than once. Clearing that opens up a measured move of $300 to the $3,800 level based on the consolidation. I have no interest in shorting gold. I do think that eventually it will go much higher, but as things stand right now, we have to assume that the market continues to be a buy on the dip type of situation, but you’re going to need to have a lot of patience.

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