Gold Price Outlook – Gold Continues to Race Higher

Gold Technical Analysis

The gold market has broken out yet again to fresh new highs, and it looks like it’s got nowhere to go but up. With this being the case, I think you have to be very bullish on gold.

Now, there are reports that Federal Reserve Chairman Jerome Powell is being investigated by the Department of Justice in the United States, rattling markets, and a safe-haven bid comes into play. That being said, there’s probably not too much to it, and I think that gets out of the way. Regardless, there was no reason to short this market to begin with, so I think you’ve got a situation where when gold pulls back, people come out to buy it.

Gold’s Bullish Technical Structure

There is plenty of support underneath, with the $4,400 level, I think, now acting as the floor. There are plenty of geopolitical issues out there just waiting to cause problems, and, of course, the US dollar’s decline during the day also helps.

Central banks around the world continue to hoard gold, and structurally speaking, the ascending triangle that I had marked on the chart measured for a move to $4,900. There is literally nothing on this chart that even remotely suggests that we can’t get there. Anytime gold falls, you have to assume it’s a buying opportunity, especially once we start bouncing again. With that, I think we go higher, and I still believe that $5,000 an ounce is something we’ll see this year. That being said, if we break below $4,000 on a daily close, the trend is probably over for this cycle. We are nowhere near that situation at the moment.

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