Gold Price Outlook – Gold Continues to See Buyers on Dips

Gold Technical Analysis

The gold market continues to be very noisy, but ultimately, I think you’ve got a situation where traders are just simply trying to sort out where to go next mainly due to the noise that we have seen over the last several weeks, perhaps in a bid to try to work off some of the froth from the move higher. Furthermore, you also have to keep in mind that traders are looking at a plethora of different things going on at the same time.

Geopolitical concerns, there are concerns about the US dollar, what the Federal Reserve may or may not do, and also, of course, we just had exhaustion. The 50-day EMA sits just below, and I think that offers plenty of support. If we can break out to the upside, the $3,400 level would be your next target. The overall picture for me is that the $3,200 level is the floor, the $3,500 level is the ceiling.

If the market were to break above there, then you would have to assume that a measured move would be your target, meaning the gold could go to $3,800. When you look at the longer term charts, there’s really nothing to suggest that can’t happen. Yes, we’ve had a very bullish run over a couple of years, and we may need to spend some time in this range. If you are a range bound trader, this is an excellent market for you if you’re patient enough to wait for the extremes of the $300 range to be tested.

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