Gold Price Outlook – Gold Continues to See Positive Moves

Gold Technical Analysis

The gold market is slightly positive during the trading session here on Friday as we are hanging around above the $4,200 level. The $4,200 level, of course, is an area that has been important multiple times. And this is, I think, a market that is just simply trying to work off some of the massive upward trajectory and bubble-like behavior that we had seen previously. This is just the market trying to work of excess momentum and volatility.

All things being equal, this is a market that I think short-term pullbacks give us an opportunity to buy gold because we’re not seeing massive selling pressure. Volume is lower than it once was, but I think a little bit of sideways action here actually ends up helping the markets in general. And with that being said, I think as long as we can stay above $4,000, we’re in decent shape. Really at that point in time, we would only be sideways, and that’s not the end of the world.

Gold, of course, needs to cool off and become attractive for new money to come into the market. But it does have a permanent bid of sorts from the central banks out there, so I still like it. Ultimately, I do think we test the $4,400 level. If we break above there, then we go to $4,500 and start to have the conversation at that point about $5,000 an ounce. This sounds like a bit much at the moment, but then again, so did $4,000 just a year ago.

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