Gold Price Outlook – Gold Continues to Look Strong

Gold Technical Analysis

The gold markets have rallied again during the early hours here on Monday, as we have broken above the $3,850 level during the session. Ultimately, this is still a very strong market that continues to see plenty of buyers on dips. Ultimately, this is a market that I think continues to see a lot of value overall. And really at this point in time, anytime this market drops, it seems like people are willing to jump in and take advantage of it. Central banks are starting to pile into gold. So that gives you a bit of a permanent bid. And then just simple momentum shows that gold was ready to go higher.

We had a pretty significant ascending triangle previously and breaking above that opened up a measured move to $3,800, which we have fulfilled. And now it looks like we are ready to go looking at the $3,900 level and then eventually, I believe the $4,000 level. With that being said, I think we have a situation where anytime gold falls for any significant amount of distance, people are willing to jump in to take advantage of cheap ounces. If we break down below the $3,650 level, then I think maybe we have to test the 50 day EMA. I don’t even have the scenario anymore where I would want a short gold.

I don’t have a level at this point. We would have to have major fundamental changes that quite frankly, I just don’t think are happening. Gold is rising. This isn’t about the US dollar because the US dollar has been fighting back recently against most currencies and gold still rises, so you can’t use that correlation. Really, at this point, you just have to recognize it is what it is. Gold is still strong.

For a look at all of today’s economic events, check out our economic calendar.