Gold Price Outlook – Gold Continues to See Selling

Gold Technical Analysis

The gold market initially tried to rally a bit during the trading session on Wednesday but gave back gains rather quickly as the volume continued to pick up. I have to ask the question whether or not we are entering a distribution phase, and it’s possible that if we rally from here, we may continue to see a lot of selling pressure.

After all, the market went straight up in the air almost nonstop since the beginning of September and has seen a roughly $900 range from the bottom to the top of the breakout, the ascending triangle that we had been in, which measured for a move to the $3,800 level. And we, of course, did hit that and then went much higher. And it’s worth noting that the 50-day EMA is closer to the $3,800 level as well.

So, I think with this being the case, a drop could try to target that for a floor; we’ll just have to wait and see. But ultimately, this is a market that I think you need to get on the side of the market and just wait for some type of bounce to tell you when it’s time to get involved. We are just now testing the 38.2 % Fibonacci retracement level from the shot higher.

The question is, will we hit 50 and 61.2? It’ll be interesting to see how this plays out. I don’t necessarily advocate shorting gold here. I just recognize that just jumping in blindly is going to get you wrecked, just like it did over the last couple of days.

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