Gold Price Outlook – Gold Continues to Rise on Monday

Gold Technical Analysis

The gold market continues to drift higher, but quite frankly, at this point, we are a bit stretched, and it’ll be interesting to see how this plays out because, quite frankly, I think you have to be very cautious with chasing the trade, but clearly it’s a one-directional market. You can’t get short of gold anytime soon. I just don’t know how you could justify it in this environment.

Key Technical Levels in Focus

With that being the case, I think the $4,200 level is an area that traders will be watching as it was previous resistance, and it should end up being support based on market memory. It’s really not until we break below $3,950 that I start to worry about the trend. And right now, we are nowhere near that and continuing to rip higher. Ironically, most people believe this is about the US dollar collapsing. And the reality is that although the US dollar is a little bit soft in the morning and has been over the last couple of days, it’s not exactly falling apart.

So, with that, this is clearly a lot of people out there trying to find safety, and of course, maybe a reaction to the bond markets. We’ll have to wait and see. But at this point, we’ll be watching $4,400 to see whether or not we can break above there. If we can, then we just continue the overall trend.

Right now, though, I expect to see quite a bit of choppiness. This is the beginning of the month, so maybe people are putting orders in because of that. Again, that’s really hard to tell, but it is a possibility.

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