Gold Price Outlook – Gold Continues to See Upward Pressure Overall

Gold Technical Analysis

The gold market has gone back and forth during the trading session here on Thursday, as we continue to see a lot of noisy trading, and we are now looking at the 4,000 level as a potential floor. The 4,000 level of course is a large, round, psychologically significant figure that should have certain amount of market memory based on the previous action here over the course of a couple of hours.

If we break down below there, then the $3,800 level becomes the focus as it was the measured move of the ascending triangle. Ultimately, this is a situation where traders will continue to be looking for dips as buying opportunities as central banks continue to pile in gold. And of course, just simple momentum will have traders doing the same thing.

Ultimately, I like the idea of trying to find value, but I don’t necessarily want to chase a market that has just exploded since the 19th of August, basically. It hasn’t even been that long, and we are already up almost a thousand dollars. I do think that given enough time we probably have a really wicked pullback, but I’ve not seen signs of it yet. With this, I remain bullish but also know that we could find trouble rapidly with this overbought scenario that we have been in for some time. Gold is on fire at the moment, but sooner or later, there will be people out there looking to take their profit after this move.

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