Gold Price Outlook – Gold Continues to Stay in Range

Gold Technical Analysis

The gold market has pulled back just a bit during the trading session here on Tuesday in the early hours. However, I wouldn’t read too much into it other than it is a market that is close to the top of the range that we have been in. The 50 day EMA sits underneath and has offered quite a bit of support. But when I look at the longer term charts, the bigger consolidation range that I am interested in is from $3,200 on the bottom and $3,500 on top.

This is the summer range that we have been in, and that does make a certain amount of sense. Considering that we had shot straight up in the air for so long, one would have to assume that sooner or later, we had to digest these gains. By doing so, the market is likely to continue to see a lot of questions asked about whether or not it could continue to just race to the upside.

A market pulling back like this from time to time shows just a little bit of indecision, but I think it also shows a little bit of a lack of interest at the moment. August is probably going to be more of the same, but we do have the possibility of external headlines jumping into the picture.

There are a lot of questions out there about what the Federal Reserve will do. And as long as that’s the case, it’s going to make quite a bit of sense that gold stays in this range. So, a pullback here probably ends up being a buying opportunity in the next few days. That being said, I don’t have any interest in shorting gold just because the previous trend had been so strong to the upside.

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