Gold Price Outlook – Gold Continues to See Consolidation

Gold Technical Analysis

The gold market has pulled back just a bit during the early hours here on Wednesday, as it looks like we are still struggling to get a clean move to the upside. This does make a certain amount of sense, considering that we are at the end of summer and there will be a lack of institutional participation. That being said, when you zoom out on the chart, you can see clearly that we are in an uptrend and perhaps, and this remains to be seen, but so far it seems to be the case, still in an ascending triangle. That means that eventually this market should resolve to the upside, at least in theory.

If we break above the $3,500 level, that could send gold looking to the $3,800 level based on the measurement of the triangle. The 50-day EMA sits underneath at the $3,373 level and is rising. I think that will continue to offer support as it’s been almost like a trend line for several months now.

Keep in mind that central banks around the world continue to buy gold, and of course, the Federal Reserve is getting ready to cut rates. However, another thing to keep in mind is that if we are in fact going to see a bit of an economic slowdown, gold may eventually be a winner anyway, as people try to find ways to protect their wealth.

Regardless, I wouldn’t get it too twisted at this point in time. I think you’ve got a situation where you’re just looking to buy dips. You’re looking to take advantage of cheap gold as it occurs. That, for me, is the way forward. However, this time of year, like I said, is pretty quiet with vacation season going on, so it might be somewhat choppy and sideways with a slightly upward tilt between now and the middle of September.

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