Gold Price Outlook – Gold Continues to Sit Near 50 Day EMA

Gold Technical Analysis

The gold market has fallen a little bit during the early hours on Friday, but really at this point in time, we are still pretty quiet. I think at this juncture, we are just simply looking for some type of reason to get moving. That reason, of course, I believe is going to end up being Jerome Powell and his speech from Jackson Hole. So, with that, the market probably is going to be very quiet until we get that speech. And then once that comes, a lot of it’s going to come down to whether or not people believe that the Fed is in fact going to cut rates or get loose with monetary policy or whatever. So, I think at the end of the day, we will get a little bit more clarity and, in that environment, we should get a little bit of a move just waiting for it to happen.

If we were to break down from here, the $3,300 level would be an area I’d be interested in for support, and the $3,500 level above would be a nice target. If and when we can break above the $3,500 level, I think at that point it unleashes the market to go much higher, perhaps to the $3,800 level based on the $300 measured move of the ascending triangle.

Keep in mind that part of what’s been going on here is summertime trading. There’s just a simple lack of volume and momentum. So, with this, I think you have to understand that market participants are just simply kind of spinning their wheels, killing time, if you will, until the large amount of volume comes back into the trading pits. Between now and then expect choppiness, I still believe that longer term the bulls win.

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