Gold Price Outlook – Gold Continues to See Choppy Behavior

Gold Technical Analysis

The gold market initially gapped lower to kick off the Thursday session as Jerome Powell was a bit more hawkish than people expected really through the currency markets, and therefore interest rate markets, and commodity markets for a loop. That being said, it looks like gold has spent almost the entirety of the Asian and European session getting back to where it had gapped lower from. We are looking at the 50 day EMA underneath offering support and therefore it does make a certain amount of sense that we find ourselves just stuck in the inner consolidation of the larger action that we had seen for some time.

The outer consolidation area, which is basically the range we’ve been in since the early part of April, has the $3,200 level on the bottom and the $3,500 level on the top. As we are basically in the middle of that, it’s very difficult to get overly bullish or bearish on gold. And I recognize that we are just simply killing time.

This makes a certain amount of sense that we are essentially going sideways, working off some of the previous froth that we had in this market on the way up. If we can break above the $3,500 level, then the market could go looking at the $3,800 level based on the measured move, just as if we break down below the $3,200 level, it would not surprise me at all to test the $2,900 level based on that same measured move. I do believe that we will go higher eventually, but at this point we just don’t have the catalyst.

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