Gold Price Outlook – Gold Continues to Pressure Upside

Gold Technical Analysis

Gold initially did take off to the upside during the trading session here on Tuesday, but it does look like the $4,200 level is offering a bit of resistance. And truthfully, this is a market that I think desperately needs to pull back. We are getting overdone pretty rapidly here. And of course, the only thing you’re hearing out there on the financial channels will be stories about gold and silver. So that’s almost always a sign that you’re getting closer to the end than the beginning.

So, I think ultimately this is a market that pulls back and could offer support here. We’ll just have to wait and see. $4,000 probably ends up being psychological support that people will pay attention to. If we break down below $3,950, then we could drop all the way to $3,800, which quite frankly, I think would be very healthy in this environment. But the 50-day EMA racing towards that level, I think would only add more support.

We could, of course, just continue to go higher and break through the $4,200 level, but I don’t like that move. That being said, I could have said that about half the moves that we’ve had over the last couple of months as the market has just exploded to the upside. Watch the US dollar if it starts to pick up a little bit of a bid that can lead to a little heaviness here, although that correlation has been broken as of late.

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