Gold Price Outlook – Gold Continues to See Inflows

Gold Technical Analysis

The gold market has rallied again during the early hours here on Tuesday as market participants continue to bet on a Federal Reserve loosening its monetary policy and therefore driving down the value of the dollar. The gold market, of course, is a natural benefactor of such a situation, but if we do get a bit of concern out there, it’s also possible that traders will look at this through the prism of just simple safety. After all, there are a lot of questions out there about what’s going to happen next with the global economy.

And gold, of course, will be a big winner if there’s a lot of fear. Ultimately, I think at this point in time, gold continues to go higher and based on the measured move of the ascending triangle that we just broke out of, it does suggest that we should go to $3,800. So, I’ll be watching that. But I am the first person right now to suggest and acknowledge that we are a little overdone. I do think we are due for some type of pullback. Whether or not we get it remains to be seen.

But at this point, I think it’s clear that you cannot short the gold market. Any drop at this point in time could end up being a buying opportunity in what has been a very strong move to the upside. Over the longer term, I anticipate that we have a situation where we not only fulfill the $3,800 level, but quite frankly, we could find ourselves fulfilling a much higher target than that if enough time goes by.

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