Gold Price Outlook – Gold Continues to See Choppy Trading

Gold Technical Analysis

The gold market has gapped lower to show signs of negativity at the very open, but we’ve turned around to show a bit of buying and now we are pulling back again. A lot of this could come down to the fact that we are basically dead center of the consolidation area that we had been in for some time, with the 50 day EMA underneath offering a significant amount of support. If we can break down below there, then the $3200 level is an area that I think is a major floor.

The major ceiling in this market is closer to the $3,500 level, and I feel like a broken record saying that again, but we are basically right in the middle of this same area that we’ve been in since April. Gold has essentially been range bound, somewhat dead money. That doesn’t necessarily mean that it’s going to fall apart. I just think we need some type of catalyst to get going in one direction or the other. Another thing to keep in mind is that during summer, many times markets are quiet.

There’s really nothing special about this summer and so much as fact that we’ve really haven’t done a lot. Yes, granted, Donald Trump could come out and say something at any given moment and get the markets flying. But really, at this point, I think you just have to assume that we are trading in a $300 range. And we happen to be right in the middle of it, which in and of itself is something worth paying attention to, and it does suggest that on dips, we can probably start to think about buying the market based on value. If we were to break down below the $3,200 level, then perhaps we dropped to 3,000, which is a nice, large, round, psychologically significant figure, and now has the 200-day EMA attached to it. A break above the $3,500 level based on the measured move of the consolidation suggests that we could go to the $3,800 level.

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