Gold Price Outlook – Gold Continues to See Strength

Gold Technical Analysis

The gold market has rallied pretty significantly during the trading session here on Friday, as we gapped a little bit lower only to turn around and rally, and now it looks like gold’s really getting ready to take off, as the jobs number in America was so horrific. We ended up adding 22,000 jobs instead of the expected 75,000, and now traders are betting on the idea that the Federal Reserve is going to become very aggressive with its interest rate cuts. If that’s the case, then you’ve got a situation where the US dollar might shrink, and gold should go higher. But eventually, the dollar may get a little bit of help due to a safety run. But as traders run to safety, they’ll be running to gold as well, trying to protect their wealth.

The technical analysis is extraordinarily strong for gold, as we have been consolidating here in this ascending triangle. We broke above there, and now we have a $300 target of $3,800. We’ll just have to wait and see whether or not we get there, but it certainly looks like we could. I think that short-term pullbacks will end up being buying opportunities, with the $3,500 level offering support, possibly even the $3,500 level.

I have no interest in trying to fight this trend. It has been extraordinarily strong, and I just don’t see that changing anytime soon. Ultimately, if we do fall, there should be plenty of value hunters out there looking to take advantage of cheap gold, as it has been so strong at this point in time.

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