Gold Price Outlook – Gold Continues to Rally

Gold Technical Analysis

The gold market initially pulled back a bit during the early hours here on Tuesday only to turn around and show signs of life again. By doing so, gold looks as if it is trying to get to that crucial $3,500 level again, which is the top of the larger consolidation area that we have been bouncing around in since the beginning of April. The market killing time here is not a huge surprise. Quite frankly, we barely had much of a pullback over the last two years, really.

So, I think you have a situation where you have to look at this through the prism of a market that is trying to find another reason to go higher. And if and when we can break above the $3,500 level, then I think you’ve got a real shot at this market ripping to the upside. I don’t have any interest in shorting gold regardless. And I think that each and every dip offers a bit of a buying opportunity due to the bullish nature of it and the fact that the US dollar is shrinking a bit, while a lot of people are concerned about global trade, which has them running into the gold market anyway.

Furthermore, we have plenty of geopolitical risk. So, it all ties together quite nicely for gold to continue going higher. And we also have a permanent bid in the market in the form of central banks out there willing to step in and buy gold and add it to their reserve. So, all things being equal, this is a market that every time we dip, I’m looking for a bounce that I could start buying again. This time of year is typically very choppy, though. And with that being the case, I think you have to understand that you’re probably not going to see massive moves without some type of external force or headline.

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