Gold Price Outlook – Gold Continues to Look Supported

Gold Technical Analysis

The gold market has rallied a bit during the early hours on Thursday as we are just simply consolidating a bit, and continuing the overall grind higher. At this point, it looks like the $3,800 level is going to continue to be resistance, but if we can break above there, we could go looking to the $3,900 level. And now we are starting to think about the $4,000 level, which is about 11% higher than here.

That doesn’t mean we get there overnight, but what it does mean is that traders continue to jump into the market. There’s just nothing here that suggests gold is going to suddenly fall from the sky like rain. This market has a considerable amount of noise right around the $3,700 level, which should be translated into support again if we get there anytime soon.

And then we have the 50-day EMA at $3,550 and rising, followed by the $3,500 level, which, of course, is a large, round, psychologically significant figure and an area that previously had been massive resistance. Based on the ascending triangle that we had broken out of down here, the projected target was $3,800 and we have hit that. So, a little bit of profit taking I think is going on for technical traders but given enough time. When this thing drops and bounces, that’s where more people will jump in trying to ride that wave to the next couple of targets to the upside, as we remain very bullish in this gold markets.

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