Gold Price Outlook – Gold Drifts Slightly Lower Early Thursday

Gold Technical Analysis

The gold market continues to be very noisy, but as we are at the top of a channel, it is not a huge surprise to see that the market is struggling a bit. That being said, short-term pullbacks do offer buying opportunities, with the $4,200 level being a massive support level right along with the 50-day EMA, which is at the bottom of the channel. It is not even expected that the market will get down there, but if it were to pull back into those areas, that would likely be value that traders would be chasing.

Key Levels and Upside Potential

If the market can break above the $4,400 level on a daily close, or better yet on a weekly close, that would kick off the next leg higher in gold as the market races to the upside. The longer-term attitude in gold remains fairly bullish, and the focus continues to be on finding value in a market that is backed up by central banks through both policy decisions and their actual buying of gold as they have been for some time.

Momentum remains in favor of the bulls, and the US dollar has softened a little bit, which does help. Typically, that correlation is not relied upon too heavily, as it would not be surprising to see both the United States dollar and gold rally early next year. Either way, this is a chart that looks very healthy, and there is really nothing on it that suggests the trend is about to end anytime soon with this kind of momentum.

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