Gold Price Outlook – Gold Continues to See Buyers

Gold Technical Analysis

The gold market pulled back just a bit during the trading session here on Thursday, only to turn around and show signs of life again. All things being equal, this is a market that I think given enough time probably goes looking at the $4,000 level, which of course is a large, round, psychologically significant figure that people will be paying attention to and of course, will open up the possibility of a headline risk, and people piling into the market to take profit.

Short-term pullbacks, I think, offer buying opportunities. And I think that the $3,800 level should end up being a significant support level. Quite frankly, there’s nothing on this chart that even remotely suggests you should be thinking negatively. The ascending triangle that we had broken out of previously had a target of 3,800. We’re now above 3,900. And therefore, I think that $3,800 target probably becomes a pretty hard floor in this market, as we have seen it be so important a few times in the past.

Central banks around the world continue to buy gold, so there’s a permanent bid. And of course, you have the Federal Reserve likely to cut rates a couple of times between now and next summer. And if that’s going to be the case, that could help gold as well. Beyond all of that, we have plenty of geopolitical tension out there that can drive the price of gold up as well. I see no reason to think that we are not able to get to the $4000 level.

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