Gold Price Outlook – Gold Continues to See Barrier Above

Gold Technical Analysis

The gold market has pulled back ever so slightly during the trading session here on Wednesday, as it looks like we are at the top of an obvious range and it does make a certain amount of sense that we would see a little bit of trouble here. If the market were to jump from here, it still has to deal with the $3,500 resistance barrier, which of course is very difficult to overcome.

So, with that being said, I like the idea of letting this market drift a bit lower. I don’t really want to get in front of the market here trying to break out. I want it to break out and then I’ll follow. We are in the middle of summer, so it does make a certain amount of sense that we grind sideways overall. And therefore, I like the idea of watching the market pull back and taking advantage of the bounces as they come. I think there are plenty of reasons for gold to go higher over the longer term.

But right now, summertime is just a little bit quiet and we are working off some of the froth from the huge move higher over the last couple of years. The $32 level underneath is the massive floor in the market. And if we were to break down below there, it would definitely show a change in attitude. But long before we get there, I would expect multiple places to come in and offer support. The 50-day EMA, of course, is one of them, and then after that, you’ve got the $3,300 level. I like buying dips. I like finding cheap gold where I can. And once we break out, I would anticipate a measured move of the consolidation, meaning the gold could hit $3,800 level.

For a look at all of today’s economic events, check out our economic calendar.