Gold Price Outlook – Gold Continues to Look for Momentum in Consolidation

Gold Technical Analysis

Gold markets have initially pulled back just a bit during the early part of the Tuesday session, only to find buyers again. Ultimately, this is a market that I think given enough time will try to get back to the 3,500 level, but it’s also worth noting that the market is probably going to remain fairly choppy. After all, there are a lot of questions as to where monetary policy is going, as well as risk appetite. Keep in mind the volume is a little lower than usual this time of year due to the fact that most of the Wall Street traders are away on vacation. So, while we are just simply continuing what we had seen previously, the reality is that it’s a fairly quiet time of year unless something external or unexpected happens.

Short-term pullbacks do tend to offer buying opportunities, with the 50-day EMA offering potential support near the $3,370 level. Even if we break down below there, the $3,300 level could be targeted for support, and then the $3200 level, which I think is the hard floor. And at that point in time, we’re probably approaching the 200 day EMA anyway. If and when we can break above the $3500 level, and I still think that’s a very real possibility. The measured move of $300 then comes into play and we could go looking to the $3,800 level for the next target on that breakout.

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