Gold Price Outlook – Gold Continues to Look for Momentum

Gold Technical Analysis

The gold market has gone back and forth during the trading session here on Thursday, as it looks like we’re just hanging around the $3,400 level yet again. The last three days have seen the market go sideways after plunging lower on a failed breakout above the $3,500 level. We have the 50-day EMA underneath offering support in what could be potentially thought of as an ascending triangle of sorts.

If we break down below the 50-day EMA, then we could be back into the rectangle pattern. But either way, I think we’ve got some consolidation and that makes sense this time of year. Quite frankly, we just don’t have momentum, typically speaking, as the overall volume tends to drop as most traders are, quite frankly, sitting somewhere on vacation on a beach. Junior traders might be at the desk, but they don’t make big decisions in these institutions.

Either way, we’ll be watching to see what the Federal Reserve has to say in September because that will be a major influence on what happens with gold next. But when I look at it, I mean, there’s not much to say other than it’s for the most part going up from the lower left to the upper right most of the time since 2017. So, I don’t even know why I get emails all the time asking me whether or not people should be fighting the trend. It seems pretty straightforward to me that gold has been gaining, although there’s been some times when it’s gone sideways.

And if you’ve owned gold for the last eight years or so, you’ve made a pretty nice profit. You basically tripled your money. Now, that doesn’t mean that there won’t be an occasional pullback, but those should be thought of as potential buying opportunities. It’s really not until we break down below the $3,200 level that I’d be concerned about the trend. And even then, I think it’s probably best thought of more as a correction. On a break above the $3,500 level, I look at gold as going to $3,800.

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