Gold Price Outlook – Gold Continues to Look for Higher Levels

Gold Technical Analysis

The gold market has rallied again during the early hours here on Tuesday as we continue to see traders run to gold for safety. That being said, we have a situation where traders are also going to have to deal with the Federal Reserve meeting coming at the end of Wednesday with the announcement and the statement. That, of course, will have a major influence on what happens next with gold.

Short-term pullbacks should continue to offer buying opportunities, though, because quite frankly, this is a market that has been very bullish, and I just don’t see how that changes anytime soon. That doesn’t necessarily mean that I think we are going to suddenly explode to the upside. I just think that there is an underlying desire to own gold out there and that will continue to be the case.

With this, I find the market a market that, hopefully, if we do get a pullback, we’ll find plenty of support near the $3,300 level, possibly even the $3,200 level. I do think that over the longer term we will probably see the $3,500 level tested. It was a large, round, psychologically significant figure that acted like a ceiling. There are a lot of concerns about geopolitics, the global trade war, and of course, central banks around the world, some are becoming a little bit more uncertain and a little bit more dovish. That’s helped gold as well.

If we get a shrinking US dollar, that will be the final piece missing, and we have had that for a while, so we’ll have to wait and see how that plays out. Nonetheless, this is a market that given enough time, I think anytime it pulls back, you look for a bounce, you try to take advantage of it. Does it offer the value that you are looking for in order to continue to buy gold going forward. I have no interest whatsoever in shorting this market.

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