Gold Price Outlook – Gold Continues to Search for Momentum

Gold Technical Analysis

The gold market has pulled back just a bit during the trading session here on Tuesday in the early hours, but I still think that we have a lot of buyers out there willing to get involved. Quite frankly, the gold market has been going sideways for several months now after initially shooting straight up in the air. So, with that being the case, I think you have to look at this through the prism of a market that remains bullish long-term but is working off some of the excess froth.

If you think about what’s gone on recently, it does make a certain amount of sense that we are going sideways because, quite frankly, we had shot straight up in the air, we had a lot of geopolitical events, we had some concerns about a tariff war, and everything else. And now I think the market is just wiped out. I just don’t think that anybody is willing to throw a ton of money into the market, especially now that we are in the middle of summer.

That being said, I do think pullbacks will continue to attract buyers from a longer-term standpoint, as the market has been very bullish for quite some time. And I do think that continues to be what we look to. The $3200 level underneath should continue to be support, assuming that we even break below the 50-day EMA.

On the upside, we have the $3,500 level, which, of course, is a large, round, psychologically significant figure and an area where traders will be paying close attention to previous resistance. If we can clear that area, then we have a real shot at this market, perhaps going much higher. The measured move from the consolidation would be for a target of $3,800, but quite frankly, we need some type of catalyst to make that happen.

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