Gold Price Outlook – Gold Continues to Look for Momentum

Gold Technical Analysis

The gold market has fallen a bit during the trading session here on Wednesday as it looks like we are breaking below the 50 day EMA. Of course, the question now is going to be whether or not gold will find buyers in this general vicinity just below $3,300. I think there is a certain amount of support underneath that will come into the picture. And if we do, in fact, fall from here, I anticipate that it is probably only a matter of time before buyers return.

Now the question of course is going to be whether or not the $3200 level holds up because quite frankly, the $3200 level is an area that’s a large round, psychologically significant figure, and of course an area that has been tested previously. I do like the idea of buying a dip here, but I need to see a little bit of momentum to the upside and a little bit of bouncing, maybe forming a V pattern on short timeframes in order to get involved.

The $3,200 level holding is paramount, but if it gives way, then we may have to reset at the $3,000 level, an area that obviously has a lot of psychology attached to it and now has the 200-day EMA rushing towards it as well. So, I think that’s your actual floor in the trend. The floor in the sideways action you’ve seen is $3,200 and that sideways action makes sense considering that we’ve shot straight up in the air. At this point I think the market is just waiting for more information.

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