Gold (XAUUSD) Price Outlook – Gold Continues to See Pressures

Gold Technical Analysis

The gold market has been absolutely crushed in New York trading, as it looks like we are more or less focusing on interest rates as they are climbing. And of course, everybody is freaking out and panicking. This is mainly driven by algorithmic trading. Longer term, we’re still very much in an uptrend, but we did just complete a double top, and we have confirmed that we’re trying to break the neckline. The question, of course, will be, where do we close? If we close well below the 50 day EMA, then that obviously could be a relatively negative turn of events, and it opens up the possibility of a correction down to the $3,000 level.

Quite frankly, this is probably not a huge surprise. People got a little overexcited about gold. And it’s also possible that something’s going on in the interest rate situation that has people trying to collect some profit from these trades in order to pay for some horrible mistake they made somewhere else. That happens a lot in the gold market. Nonetheless, I’m watching this 50 day EMA very closely. I think it will matter before it’s all said and done. But the question is, will we bounce and recapture $3,200 by the end of the day, or will we just continue lower?

You can make an argument that either is truly possible. But $3,000 would be an area I’d be very interested in. We’ll just have to wait and see how things go. Right now, everything is awesome again because of the potential of a trade deal. So that has taken that fear trade out of gold, and if that’s the case and everything truly does work itself out, then the premium paid for gold at the moment is probably a bit excessive.

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