Gold Price Outlook – Gold Continues to See Buyers on Dips

Gold Technical Analysis

Gold markets have initially pulled back during the session here on Wednesday, but as you can see, they have also bounced in order to show signs of life. It is worth noting that gold had been overextended previously, so this little bit of sideways action probably will help going forward. Ultimately, I think this is a scenario where traders continue to see gold as a favorable market to be involved in due to the geopolitical concerns, the US dollar shrinking, and of course, the fact that we may see a recession in the United States.

In fact, the GDP numbers came out weaker than anticipated and actually negative in the United States during the session. So that has given gold a bit of a reprieve here in this general vicinity. Whether or not we continue to see gold go sideways or truly take off remains to be seen. But I believe at this point in time, we have a scenario where traders continue to look at dips as buying opportunities. The $3,500 level is a major barrier to overcome, but I think given enough time, we will.

The weekly candlestick from last week was a massive shooting star, and it certainly looked like people were getting a bit nervous, but this GDP number, of course, changes a lot of things. If we do drop from here, I think $3,200 ends up being a major support level, while the 50-day EMA underneath there also offers support. I’m looking at buying dips, which has been the play all along with gold. I don’t know if anything has changed.

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