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

Gold Technical Analysis

The gold market continues to see a lot of noise right around the 50-day EMA. The 50 day EMA, of course, is an indicator that a lot of people pay close attention to. So, it’s not a huge surprise to see some action in this area. Furthermore, the 3200 level is an area that a lot of people will be paying attention to, regardless and therefore, I think you’ve got a situation where the market is just simply finding value in this area.

Whether or not we can find momentum is a completely different story. But right now, I believe ultimately, this is a situation where a pullback continues to get bought into. But if we were to break down below the bottom of the candlestick for the Thursday session, we could see this market really start to fall apart, perhaps reaching down to the $3,000 level on the upside. On the upside, if we can break above $3270, then I think you’ve got a real shot at this market breaking towards the $3,500 level again.

While I am bullish of gold longer term, I recognize that we are in the midst of a pretty nasty pullback. So, it does make a certain amount of sense that a little bit of caution is advised. Nonetheless, we are still very much on an uptrend and that obviously has not changed. I remain bullish long term, but am looking to find a bit of upward momentum to return.

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