Gold Price Outlook – Gold Continues to See Buyers on Tuesday

Gold Technical Analysis

Gold markets are slightly positive in early trading on Tuesday as we continue to just grind higher. We had a little bit of sideways action for a couple of days and now it looks like we are trying to get impulsive again. We’ll just have to wait and see. There are a lot of headlines out in the next week or two that will have a major influence on gold, not the least of which will be the Federal Reserve interest rate decision on the 17th of September.

But we also have this Thursday, the European Central Bank and their interest rate decision which could give us a little bit of momentum in gold as well, we’ll just have to wait and see. I think at this point in time it is a little tough to chase a market that has basically been straight up in the air for about 12 to 14 days, with the exception of one candlestick that ended up being a somewhat bullish hammer anyway.

So, I think a lot of people are probably waiting for a pullback. Sharp pullbacks and then quick recovery types of moves would be expected, I think, in this type of environment, with the $3,500 level being the absolute floor in the market based on the ascending triangle that we had broken out of previously. The measured move is expected to see gold go looking towards the $3,800 level. There’s literally nothing on this chart that tells me that can’t happen.

Building a stronger strategy for gold trading begins with What Really Drives Gold, Silver, and Precious Metals Prices: A Comprehensive Guide

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