Gold Price Outlook – Gold Continues to See Upward Pressures

Gold Technical Analysis

The gold market has been a little bit back and forth during the trading session here on Tuesday, which is not a surprise. CPI is coming out, and even if it does shock the market, I look at this as a market you’re looking to buy dips on, and certainly not sell anytime soon.

The $4,500 level would be an excellent place to buy dips if you get that opportunity, but we have just broken out to the upside, and that does suggest that we go further. Longer term, I fully anticipate that we will challenge the $5,000 level, and while I had originally thought it might be the middle of the summer, with the way the markets are behaving, it could be three weeks from now. We just don’t know.

Buy the Dips Strategy

At this point in time, I do think that everybody’s gunning for $5,000. We will find it sooner or later. The 50-day EMA sits right along the uptrend line of the ascending triangle that is so prominent in this market, and I think you have to look at this as an opportunity to pick up cheap gold anytime it does fall.

With this, I like the idea of going long only. I have exposure to gold outside of leveraged instruments in the form of the GLD ETF and would be perfectly comfortable buying a non-leveraged position here. But with leverage, you want to find some value if you get it. If CPI ends up being kind of hot and knocks gold down, good, it just went on sale. I have no interest whatsoever in shorting.

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