Gold Price Outlook – Gold Continues to See Buying After Tensions Drop

Gold Technical Analysis

The gold market rallied significantly during the trading session here on Monday, with a very strong candlestick already as the Americans jump on board. All things being equal, short term pullbacks will end up being buying opportunities in a market that is breathing a bit of a sigh of relief after the weekend, calming down of tensions between the United States and China.

$4,000 should end up being a bit of a floor in this market, as we are now free and clear and looking very much like a market that is going to continue to be very strong for the time being. At this juncture, traders continue to look at any dip as a bit of value, and I think that remains the case. Even if we were to break down below the $3,900 level, we have plenty of support at the $3,800 level, as well as the 50 day EMA, which sits at the $3,700 level.

This is a market that is going higher eventually, but you need a little bit of value to present itself every once in a while, to pick up cheap ounces of gold. I don’t have any interest in shorting this market, and I do expect the occasional sell off, but ultimately this is the way the market has been for months, and I don’t see that changing anytime soon. So that being said, this is a market that I’m still very bullish on, and recognize that we are more likely than not going to continue to see buying over the longer-term.

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