Gold Price Outlook – Gold Continues to See Pressure to the Upside

Gold Technical Analysis

Gold markets have initially fallen during the trading session on Monday only to turn around and show signs of strength. All things being equal, the $4,200 level is going to be an area that I think you have to watch closely, as the $4,200 level is a large, round, psychologically significant figure, and it’s also an area where we have seen support previously. With that being the case, I think it probably holds for now, but if we were to break down below the $4,200 level, it wouldn’t necessarily be the end of the trend by any stretch.

It could open up a move to $4,000, which, of course, is a very large, round, psychologically significant figure, and I do think it would bring in a lot of interest. Ultimately, I’ve got no interest whatsoever in trying to get short of this market. I think it ends up being a scenario where you’re just buying dips.

Overall, this is a market that I think you have to pay attention to $4,400, because if we can break above there, that opens up the next move higher. We’ve been very bullish and very overextended for a while. And I think ultimately what you have to look at is a market that just needs to find some type of value. The value can be shown from a pull back and then a shot higher. That being said, you could do that, or you could go sideways, but either way, we need to calm down a bit. It’s reckless to chase gold in this type of environment.

For a look at all of today’s economic events, check out our economic calendar.