Gold Price Outlook – Gold Continues to See Inflows on Monday

Gold Technical Analysis

Gold has exploded to the upside to show signs of strength again during the early hours here on Monday. But as you can see, we are right around the $4,100 level and slowing down a little bit on short-term charts. The question is at this point whether or not gold can continue to rip to the upside. We had a nice rally previously and then saw a ton of volume come in to turn the market right back around. The question is, can we take all of that out? I think it really gets answered somewhere near $4,200. If we can go above there, then we can test $4,400 and perhaps even further.

Short-term pullbacks, I do think, offer buying opportunities, with the 50-day EMA at $3,900 offering a floor. If we break down below there, I think the trend’s probably all but over. The next day or two is going to be crucial when it comes to this market, so watch this very closely. I do think you have a situation where, if the sellers have in fact made the market peak, we should find out pretty quickly. I wouldn’t be short this market—at least not without signs of exhaustion—but jumping in and trying to simply buy hand over fist, I think, is a bit much as well.

Breaking $4,200, I think, then opens up more momentum to the upside. Right now, we’re making the initial move. The question is, do we have any follow-through? I think this is going to be very interesting to watch how things play out here.

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