Gold Price Outlook – Gold Continues to See Stable Movements on Friday

Gold Technical Analysis

The gold market continues to be very noisy as the trading community doesn’t really know what to do with gold at these elevated levels. The most important level, from what I can see at least, is $4,400. And if we can break above there, it’s likely that we could go much higher. Short-term pullbacks do open up the possibility of finding value. The $4,200 level I think, is a short-term floor in the market, and as long as we can stay above there, it remains pretty bullish with the previous momentum being a main catalyst.

Key Levels and Breakout Potential

But I think part of what you’re seeing here is the fact that we are at the end of the year and traders are probably a little hesitant to throw a lot of money in the market in some kind of “Yolo” trade. However, it certainly appears to be one that wants to break out to the upside. With that being said, market participants continue to see a lot of volatility, choppiness, and ultimately, I think you’ve got a scenario where there are value hunters out there, but they need to be enticed to come into the market.

I’m not particularly worried about gold at all until we break down below $3,900, maybe $3,950, and of course, we are nowhere near there. I do believe that once we break $4,400, we will probably start talking $4,500 and then $5,000 an ounce. That being said, it doesn’t mean we get there in a straight line.

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