Gold Price Outlook – Gold Continues to See Support on Dips

Gold Technical Analysis

The gold market has pulled back just a bit in early trading here on Thursday as we wait for the non-farm payroll announcement. This is a market that I think, given enough time, continues its uptrend, but we may have to get beyond those job numbers in order to find more momentum.

If we do break down from here, somewhere around the $4,325 level, I’d be very interested in buying. But there’s the possibility that we don’t even get that pullback. Keep in mind that central banks around the world continue to hoard gold, and of course, there is a lot of debt out there. Gold is one way to protect yourself from that and build your balance sheets in order to pay those debts.

Technical Analysis and Future Targets

Ultimately, breaking above the triangle that we had been forming, pulling back, retesting, and then bouncing is classic technical analysis. And if it weren’t for the fact that the non-farm payroll announcement was coming out on Friday, I would probably be a little bit more bullish. It’s not that I’m bearish, it’s just that the announcement will certainly cause a lot of chaos.

I think the uptrend line of the triangle and the 50-day EMA being at the same spot tells us that there is plenty of support. And really, I think it’s not until you get below those areas, which are somewhere around the $4,300 level, that you even begin to talk about gold correcting with any type of significance.

Based on the triangle, the measured move is $4,900, and I do think that’s a reasonable target later this year.

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