Gold Price Outlook – Gold Continues to See Ceiling

Gold Technical Analysis

Gold has pulled back just a bit during the early hours here on Friday. And at this point in time, the market looks as if it is ready to pull back significantly, as we are approaching a significant major resistance range all the way to the $3,533 level. A pullback from here, I think just continues the overall attitude of gold. And the market, I think, is probably going to be a bit too thin right now with volume, with the institutional traders on Wall Street away for holiday to really get going, but we’ll have to wait and see. We are getting close to that time of year when volume picks up drastically and we get out of the summer doldrums. So that’ll be worth paying attention to.

Currently the 50 day EMA is right along the uptrend line of the ascending triangle pattern that we have been in. So, I think the downside is limited. I’m not necessarily saying I’m looking to short gold, and when you zoom out, you can clearly see that we’ve been in a massive uptrend for two years now. Short-term pullbacks only offer cheaper gold than everything that I see. Even if we did break down below the 50-day EMA, the $3,300 level and the $3,200 level both offer significant support. If we do break out above the high that was made a couple of weeks ago, that opens up a move to $3,800 based on a conservative measurement of the ascending triangle. Again, I have no interest in shorting this market.

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