Gold Price Outlook – Gold Continues to Show Upward Pressure

Gold Technical Analysis

The gold market has rallied significantly during the early hours on Monday as we continue to stretch toward the crucial $4,000 level. The $4,000 level of course is a large, round, psychologically significant figure that a lot of people will be paying close attention to because of the headlines that it will cause. The market had previously been in an ascending triangle that measured for a move to $3,800. We reached that, we ended up pulling back to it a little bit and then took off to the upside.

I think this is just a sign that we are going to continue until we hit the $4,000 level. And at this point, I like the idea of buying any short-term dip that occurs. Central banks around the world are starting to loosen monetary policy, and they’re most certainly hoarding gold. The Federal Reserve, of course, will capture the most attention, but there have been other central banks that have cut rates, such as Canada and New Zealand, earlier this year.

So, with that being said, I think gold still has a way to go. Whether or not it can just slice through the $4,000 level might be a completely different set of circumstances, but I do think it’s a level that the market is at least going to try to break above. Pullbacks at this point in time should see plenty of support. I’m particularly fond of the $3,800 level as a potential buying area, if we actually get the opportunity to buy at that level.

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