Gold Price Outlook – Gold Continues to Rally

Gold Technical Analysis

Gold has broken higher during the trading session on Monday to finally break out a bit. But the one thing that I’d be a little bit concerned about is the fact that it happened during the holiday. Regardless, I do think this eventually goes much higher and short-term pullbacks end up being buying opportunities in a market that I think a lot of people have expected and would like to be involved in.

Any pullback toward the $3,500 level opens up the possibility of a little bit of market memory in order to perhaps entice those who have missed the breakout or those who were short to adjust their positions accordingly in order to get on the right side of the market after this move.

The 50 day EMA has basically operated as a trend line for some time. So, I would continue to watch that, although it is currently all the way down at the $3,389 level. And I would also point out that we just broke out of an ascending triangle. And if you use that, the implied target is another $300. So somewhere, in the neighborhood of about $3,800 is where this market is trying to get to, I think, given enough time. Again, short-term possible pullbacks are definitely in the cards, but really, I think those just invite buying opportunities on the bounce.

I have no interest in shorting gold and think we go much higher. The volume will pick up in September, and this is something to be watching for as we move forward.

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