Gold Price Outlook – Gold Continues to See Inflows on Tuesday

GOLD Technical Analysis

The gold market has rallied quite nicely during the trading session on Tuesday in the early hours, as we continue to see traders run toward gold in order to protect wealth. The gold markets are now above $4,500, and that, of course, is a major victory from a psychological standpoint. Short-term pullbacks will continue to be buying opportunities, and after breaking out of that massive triangle, it looks like a pullback, more likely than not, will offer value that people are going to take advantage of.

Technical Targets

I would be particularly interested in the $4,400 level if we do, in fact, get a retest of that. The markets are going to continue to be bullish, I believe, going into next year, and with the type of momentum that we have seen, I just do not see how this changes anytime soon. In fact, this could very well be another move just like we had seen from the ascending triangle through the summer.

Where does gold end up? I do not know. I would be lying if I told you that I understood completely, but looking at the size of the triangle, if you use basic technical analysis, it suggests that we are going to $4,900. I think if we get there, the market will try $5,000. I do not see any reason why it wouldn’t. If we do turn around and break down below $4,400, then we might have to find the 50-day EMA but the biggest concern in the short term is the fact that we are heading into the holidays and with that being the case it does make a certain amount of sense that the volatility and perhaps even lack of volume could be a major issue at this point. With this being the case, I think we have to look at every dip as a potential buying opportunity.

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