Gold Price Outlook – Gold Continues to See Gravity Issues

Gold Technical Analysis

The market has gapped lower for gold to start off the Monday session, reaching towards the $4,000 level. The $4,000 level, of course, is a large, round, psychologically significant figure that a lot of people will be paying attention to. And it is an area that has been offered support previously. If we were to break down below that area, then we have to start to look at the 50-day EMA as a potential support level, which currently sits at the $3,858 level and is trying to rise at this point.

If the market bounces from here, then we could see the $4,200 level get targeted, but ultimately, I think you’ve got a situation where the market, I think, just got too far ahead of itself, and it’s probably only a matter of time before the gold market has to roll over because, quite frankly, this is a market that I think got a little too euphoric. And now that everybody is talking about gold and silver, we’re closer to the top than the bottom.

That doesn’t mean that it is an immediate sell. It’s just that at the very least, I think we’re going to get some type of significant pullback eventually. The $4,400 level above was the recent all-time high. Anything above there obviously could kick off the next leg higher, but we have gotten so overdone. I think a pullback or at least sideways action is almost certainly demanded of this market to remain even remotely healthy.

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