Gold Price Outlook – Gold Continues to See Overhead Ceiling

Gold Technical Analysis

The gold market has found itself to be rather positive in the early hours here on Thursday, but it continues to see quite a bit of resistance above. And as a result, I think you have to look at this through the prism of a market that is going to be very noisy and very choppy as we get close to the $3,500 level. If we can break above that level, then gold could have a $300 measured move. I certainly don’t like shorting gold at this point, but I also recognize that gold is going to be one of these situations where we have to look at it as a buy on the dip scenario.

If we do in fact get a little bit of a dip, I would anticipate support near the $3,400 level as well as the 50-day EMA. Over time, I do think that eventually the pressure becomes too much, and the sellers get overrun, but we are in the middle of summer, and a lot of times the volume just isn’t there. And in fact, if you look at the volume study on the chart, you can see that we peaked somewhere in the middle of April and have just simply drifted lower since then.

As we get closer to September and perhaps even as late as the middle of September, we’ll start to see momentum and volume pick back up. In the meantime, I look at this as buying on the dip as the way that we go forward. I have no interest in shorting, despite the fact that I can seriously make an argument that we could pull back from here.

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