Gold Price Outlook – Gold Continues to Look Strong

Gold Technical Analysis

The gold market has rallied a bit during the early part of the Wednesday session as we continue to see a lot of noisy behavior. Short-term pullbacks should end up being a buying opportunity and I do think that we are probably going to get a pullback sooner or later, mainly due to the fact that we have non-farm payroll numbers coming out on Friday. Any pullback, any knee-jerk reaction to that number will more likely than not end up being a buying opportunity, with somewhere near the $3,550 level, a significant support level being based on its previous resistance. Based on the measured move of the ascending triangle, we could be looking at a move to the $3,800 level. The 50-day EMA is all the way down at the $3,400 level and is acting more or less as a significant uptrend line.

I don’t have any interest in shorting this market, although I would love to see it fall so, I can buy it yet again. We are entering in an impulsive leg higher, and gold can at times get very impulsive. A lot of this is probably being driven by the expectation of interest rate cuts, volume reentering the market as traders have come back from holiday season. And of course, the idea that central banks around the world are hoarding gold. So, there’s a lot of things working in gold’s favor at the moment. With that being said, I think you continue to see this market drive higher. The question is, will we get a little bit of a pullback to take advantage of? I certainly would love to see that.

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