Gold Price Outlook – Gold Continues to Grind

Gold Technical Analysis

Gold markets have gone back and forth during the trading session here on Thursday as we are sitting on top of the crucial 50 day EMA. The 50 day EMA of course is an indicator that a lot of people will pay close attention to. And I do think this is a scenario where we are going to see a lot of choppiness, but eventually I do think that we have to make a bit of a decision here. If we can rally from here, and I do think that’s very possible, I’d be looking at a move towards the $3,500 level eventually.

The keyword, of course, is eventually because it’s going to take some time to get there, as you’ve seen a lot of grinding here as of late. And I don’t expect to see explosive moves anytime soon. With that being the case, I think you have a situation where traders are just looking for some type of clarity when it comes to the Federal Reserve. And if they get that loose monetary policy that everybody is begging for, this could be a situation where gold just takes off.

If they get a bit of a hawkish statement coming out of Jackson Hole on Friday from Jerome Powell, that could send gold lower for the short term. But I think we have plenty of support near the $3,300 level and most certainly at the $3,200 level. I have no interest in shorting gold at the moment. I do think that the longer term is still to the upside. But right now, it certainly is going to be very choppy and difficult.

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