Gold Price Outlook – Gold Continues to Sit in the Middle of a Range

Gold Technical Analysis

The gold market initially gapped lower to kick off the trading session here on Friday as it looks like we are still very much in the larger consolidation area, but we have also bounced a bit to show signs of interest. The 50 day EMA sits underneath at the $3,306 level and is rallying. All things being equal, I think this is a market that will continue to see buyers on these dips. The market also has support at the 3,200 level. And that of course is an area that’s already been tested previously, and I do think is the floor in your market for the time being.

To the upside, we have to worry about the $3,500 level, which is a major ceiling. And I think as we are basically in the middle of this overall range, it’s likely that we could see a situation where we are trying to work off some of the excess froth from a shot to the upside. After all, we went straight up in the air for a while. And sooner or later, you need to work off some of that momentum. And there are a couple of ways you can do it. You can either pull back or you can go sideways and work it off through time.

Central banks around the world continue to buy gold. We continue to have geopolitical problems, although they are getting better. And of course, the Federal Reserve is likely to cut rates. So that of course has a significant influence on the gold market as well. So, I think all things being equal, you’re looking at a market where you buy dips. And then of course, if we break out at about $3,500, you definitely want to be part of that move.

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