Gold Price Outlook – Gold Continues to See Volatility

Gold Technical Analysis

The gold market has shown itself to be pretty noisy in the early hours on Thursday as we continue to see a lot of choppy back and forth behavior, but I think at this point in time, it’s obvious that gold is a market that will more likely than not continue to go higher over the longer term. I don’t have any interest in shorting this market. And I think if we do fall from here, we’ll just look for another place to start buying.

The $3,200 level, of course, is a very important level that a lot of people will be watching as it was a previous swing high, and now it’s been a short-term swing low. It also attracts the 50 day EMA. So that’s something worth paying attention to, also. So, I think that’s your short term floor.

The short-term ceiling is almost certainly going to be the $3,500 level, not only due to the psychology of that level as far as being a large, round, psychologically significant figure, but also the fact that it was the most recent swing high. I would anticipate that there are probably quite a few options being traded in that area as well. So that probably comes into play also. In general, I think this is a market that grinds its way higher over the longer term and short term dips should be thought of as potential buying opportunities and value when it comes to the gold market as it has been so strong for so long.

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