Gold Price Outlook – Gold Continues to See Pressures

Gold Technical Analysis

The gold market has fallen rather significantly during the trading session here on Thursday, as we have seen a shot higher and now almost a complete reversal of that. This shows just how tight the market is at the moment and how well bound it is in a $300 range, with the $3,500 level being a major resistance barrier and the $3,200 level being a major support level. We had been in a sideways area of consolidation just above the 50-day EMA, and it looks like that’s where we’re heading back to again. There is a lot of back and forth, just quiet summer trading where you don’t have anywhere to be.

This is a market that has been very choppy over the last couple of months, but when you look at the overall trend of the market, we have shot straight up in the air. And now I think at this point, when you’re looking at this market, you have to see a pullback just simply working off some of the excess froth. There are plenty of concerns out there about trade wars, although that has somewhat disappeared over the last couple of days as the United States has signed, or at least has agreed in principle with Japan, European Union, Philippines, Indonesia, and so on.

So that does take that out of the equation a little bit, but there’s also plenty of geopolitical concerns out there and central banks are buying gold for the reserves. So, as I look at this, I think it makes sense that as we get in the middle of this range, it’s probably a somewhat flat and neutral market that day traders may take advantage of. But as far as swing trading is concerned, we’re just right here in “no man’s land.”

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