Gold Price Outlook – Gold Continues to See Choppiness

Gold Technical Analysis

The gold market initially did try to rally a bit during the session on Monday, but turned around to show signs of hesitation. Quite frankly, this is a little bit surprising considering that the Americans bombed the Iranians over the weekend. But what this tells me is the market isn’t absolutely freaking out about it. And that is something worth noticing. If risk appetite is still reasonable, then stock markets and other risk related assets may do okay.

This means gold did not spike. I can see clearly how you can make an argument why gold should have spiked, but it just didn’t. And that’s that. You can argue with the market all you want, but the reality is that the market seems fairly comfortable going higher in risk appetite at this point. And therefore, gold is likely to stay in the same range it has been in for a while.

Having said that, I don’t necessarily look to the gold market to start shorting. I think we have a situation where it’s likely that pullbacks will get bought into, but we may stay in this range between $3,200 on the bottom and $3,500 on the top for the foreseeable future, as there’s just nothing to move the markets. There are a lot of questions out there, but no substantial answers. Because of this, I remain buy on the dip, I remain looking towards the highs, but I don’t have any interest in shorting this market anytime soon.

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