Gold Price Outlook – Gold Continues to Look Strong

Gold Technical Analysis

The gold market gapped higher to kick off the trading session on Monday as it looks like we are going to remain pretty bullish at this juncture. I think ultimately, you’ve got a situation where traders are going to continue to see this as a market that will attract a certain amount of inflows. Quite frankly, this market has, of course, been very bullish for a couple of years now, and we have now just hit a new high, and I just don’t think that is something that you can sell into. The 3,650 level will continue to be important from everything I see. And ultimately, this is a market that given enough time, it should see plenty of value hunters on each and every dip.

This breakout of course is a big deal. And I think eventually we could go looking at the $3,800 level, which is basically the bottom of the ascending triangle pattern that we’ve been escaping from and now putting in the rear view mirror. Short-term pullbacks will get bought into, I think $3,800 probably gets hit pretty quickly. And for that matter, I think we probably go higher than that. The shrinking of the US dollar helps gold, but we also have to keep in mind that gold markets are moving on a multitude of reasons. It’s not just the US dollar.

With this, I think you remain bullish on gold. I think you have to look at it as anytime it falls, it’s offering value. And in this environment, I think that momentum could very well take control again. We just went sideways for a while. And now we’re reaching that breakout speed again. Gold does tend to be very impulsive and therefore, I think it probably goes much higher.

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