Gold Price Outlook – Gold Continues to See Buyers as Market Breaks Out

Gold Technical Analysis

Gold has broken higher during the trading session here on Tuesday in Asian and European sessions and now it looks like short-term pullbacks are probably going to be bought into. This is a market that has been grinding higher for some time and now we are clear of the $3,500 level. I think it has settled the whole question of whether or not we finally would break out.

We are in that part of September when volume starts to return. And you can see over the last couple of days, volume has risen a bit, but we should get back to normal probably after Friday, once we get the jobs number in America out of the way, because of course that is something that you have to be cautious about. Nonetheless, pretty much everybody out there expects the Federal Reserve to cut interest rates at least once and probably twice, and that should help gold.

Furthermore, there are plenty of geopolitical tensions out there that could cause headaches. And of course, central banks around the world continue to hoard gold. So that puts a little bit of a natural bid in this market. Using the ascending triangle as a bit of a measuring stick, it suggests that we could be going to the $3,800 level before it’s all said and done. There’s really nothing on this chart that remotely suggests that it’s not possible. Even if we were to pull back from here, we would need to break below the 50-day EMA, which is currently at the $3,389 level, to even begin to think that the trend is shifting.

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