Gold Price Outlook – Gold Continues to March Higher

Gold Technical Analysis

Gold markets have rallied just a touch during the Friday session in what will be a shortened day and thin session, as Friday of course is the day after Christmas. Europeans, about half of them are gone anyway, futures markets close early, and quite frankly, most Americans don’t go back to work on the day after Christmas if they can avoid it. So, with all of that being said, I think you’ve got a situation where we probably go back and forth, chop around, but nonetheless, this chart tells me one thing, and that is loud and clear, as most traders are still in the same mode.

Market Memory

What that tells me is that there’s no way to short this market. We are above the $4,500 level, but even if we were to break back below it, then you would be looking at the $4,400 level as a floor. The $4,400 level of course, is a pretty significant area of previous resistance, so I would expect a certain amount of market memory coming into the picture.

That being said, I think even if we break down below the $4,400 level, the 50-day EMA sits at $4,200 and also offers support. I don’t have any interest in shorting gold; any time it pulls back I start to think about trying to find value and buying on the right-hand side of the V pattern. I will not short this market anytime soon, and think that any dips are “gifts” for traders at the moment.

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