Gold Price Outlook – Gold Continues to Soar

Gold Technical Analysis

The gold market has rallied again during the early hours here on Wednesday as the market just continues to be massive in its momentum. The market has recently broken above the $3,800 level, which was the measured move of the ascending triangle that we broke out of a couple of weeks ago. So now we don’t really have much in the way of an easy, measurable, technical target other than the psychology that would be attached to the $4,000 level. I do think, given enough time, market participants will do whatever they can to get to the $4,000 level, although I do not think it’s an easy move to make.

We are a little stretched at the moment, and we have the non-farm payroll announcement coming out on Friday, so you do have to keep that in mind. But given enough time, I think you’ve got a situation where you remain very much buy on the dips in this market and the $3,800 level probably becomes the floor. As things stand right now, there are plenty of geopolitical issues out there to keep gold lively, as well as questions about central banks cutting rates, such as the Federal Reserve, and just general fear overall, I think continues to make gold very attractive. I have no interest whatsoever in shorting this market as it has been so strong, and as a result what I would love to see is a pullback to the $3800 level, or even lower than that to get “cheap gold.”

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