Gold Price Outlook – Gold Continues to Grind Back and Forth Before Next Big Move

Gold Technical Analysis

The gold market has been somewhat choppy in the early hours here on Wednesday as we continue to consolidate right in the middle of what I think is a larger range for traders to pay attention to. The gold market certainly sees the $3,500 level above as significant resistance. And I think it is going to take serious work to get above it.

Underneath, we have the 50 day EMA near the $3,262 level, but we have support as well near the $3,200 level. So, I think you’ve got a situation here where you’re probably stuck in this range and as we are right in the middle, that basically tells me this is going to be a very difficult market to trade. In the meantime, it could go in either direction. It’s literally a coin flip at this point, but I do like the idea of buying dips and I will continue to pay close attention to them as potential value plays.

I have no interest in shorting gold, but if we were to break down below the $3,000 level, which is about a 10 % move from here, then I’ll have to reassess the entirety of the situation. As things stand right now, if we fall, I’m probably buying. I would wait for some type of bounce to confirm the momentum coming back into the market, perhaps with some volume. But at that point in time, I’d be aiming for the $3,500 level and possibly a break above there.

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