Gold Price Outlook – Gold Continues to See Support

Gold Technical Analysis

The gold market has gone back and forth during the early hours on Monday, as we continue to hang around just above the $4,000 level. The 50-day EMA is reaching toward the $4,000 level. So that will offer support as well. In other words, it looks like it’s a buy on the dip type of situation. But the one thing that is worth noting is that volume has dropped off pretty significantly over the last couple of weeks. So, we have one of two possibilities here. We either really break down or we’re just going to grind sideways and try to get used to the idea of the $4,000 level. This will be crucial in keeping the market comfortable and not falling significantly after this massive run higher that we have seen.

Central banks around the world continue to buy gold. And of course, there are plenty of other concerns out there, economically speaking, that gold could very well be a savior from. If we break down below the $3,960 level, then maybe we see a little bit more of a pullback towards the $3,800 level, possibly the $3,600 level. And then again, at the $3,500 level, we have a previous support level from an ascending triangle that took months to form, and where the 200-day EMA currently resides.

That would be your ultimate downside target from what I see at the moment. If we rally and clear the $4,200 level easily, then $4,400 will be targeted. I suspect we will probably go sideways for a while, as it is likely that the market is exhausted currently, and we are heading into the end of the year. This week will have low volume with the Thanksgiving holiday, so be advised of this.

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