Gold Price Outlook – Gold Continues to Look Bullish Despite Pullback

Gold Technical Analysis

Gold markets gapped higher a little bit at the open on Wednesday but then fell after it was announced that the United States and China are going to be meeting for talks. And that has taken a little bit of the angst out of markets overall. So, with that being said, it does make a certain amount of sense that gold fell, but at the same time, we are very much in an uptrend, and we have a long way to go before there’s any signed deal between the Americans and the Chinese. Short-term pullbacks at this point in time make a lot of sense and quite frankly, I think they offer value.

Keep in mind that we also have the FOMC during the trading session on Wednesday and the press conference will have a lot to say about where we go next. So, with that, I think all of this works out as a potential buying opportunity on dips. The market, of course, has screamed higher over the last several months, and now I think it looks as if the $3,500 level will continue to be a significant barrier. If we do pull back from here, I think we have a situation where traders will continue to look at this as being supported at the $3,200 level.

In general, this is a market that given enough time we will have to make a longer term decision, and unless something really changes drastically, I just don’t see how the uptrend ends. I think you’re looking at a buy on the dip type of market. I also recognize that we may dip further than most people think, but 3,200 would be very interesting to me. We’ll just have to see. I’m hoping for a little bit of a knee-jerk reaction to the downside and then a bounce that I can join.

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