Gold (XAUUSD) Price Outlook – Gold Continues to Test Support

Gold Technical Analysis

The gold market has gone back and forth rather wildly during the trading session on Tuesday as the latest economic numbers out of the United States, the CPI numbers, have actually come down a little bit, meaning inflation is coming down. So that takes one of the main reasons for gold to rally out of the equation, or at least it makes it less viable. That being said, the technical analysis still favors a significant amount of support in this general vicinity.

And I think you’ve got an environment where traders continue to look at this through the prism of a potential bounce from here, using $3,200 as a particularly important support level. All things being equal, I think you also have a market that continues to be very noisy. But I think the 50 day EMA sitting just below this 3,200 level will have a lot of people paying close attention.

Even if we were to break down below that level, the $3,000 level is relatively important. And the $3,500 level on the upside is a major ceiling. All things being equal, we have been in an uptrend for a long time. So, I am looking for opportunities to buy gold, but you have to be somewhat patient. Obviously, there are a lot of things going on at the same time that could cause this market to be very noisy. All things being equal, I have no interest in shorting gold until we break down below $3,000 at the very least. So, I am looking for value.

For a look at all of today’s economic events, check out our economic calendar.