Gold Price Outlook – Gold Continues to Look for Higher Levels

Gold Technical Analysis

The gold market has jumped pretty significantly during the trading session in early Asian trading. But quite frankly, this is a market that had a lot of missed prices, meaning that there was almost no volume when this happened. And we have since sold off to form a bit of a shooting star. So, I think we’re going to continue to struggle to break above the $3,500 level.

But I still believe in buying gold and I think short term pullbacks are buying opportunities, with the 50 day EMA all the way down at the $3,354 level offering a bit of a floor. I do think that you start to invalidate the rectangle that we had been in between $3,200 and $3,500 as we have pierced the top of it. So, we’ll just have to wait and see if that plays out.

If we can break the high of the Friday session, that is a rip roaring strong sign. I do expect to see that eventually, but I think at this point in time, you also have to keep in mind the volume is a bit thin as it is August. The US dollar will have something to say about this as well. And of course, interest rates and central bank actions around the world. Either way though, I think you have a scenario where gold probably needs to pull back to offer enough value for traders to get aggressive. I could be wrong, of course, and that would be a fresh new high and validating it is what I would look forward to find that out as well.

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