Gold Price Outlook – Gold Finally Touches 4k

Gold Technical Analysis

Gold markets have gone back and forth during the trading session in the early hours of Tuesday, as we have actually touched the crucial $4,000 level. This is a target that I think everybody has, and it would not be surprising at all to see a slight pullback here. In fact, we’ve already dropped $20, but that doesn’t necessarily mean the trend changes. What it means is there’s a lot of psychology around the $4,000 level, and much like big round numbers in other markets, there might be a bit of a short-term reaction. I look at any pullback as a potential buying opportunity in what has been an extraordinarily bullish market.

And with that being said, I have a specific interest in the $3,800 level due to the fact that we previously had formed an ascending triangle, and the measured move was $3,800. After that, you would assume that there would be a little bit of market memory from that cluster at $3,800. But we could just simply take off to the upside. You just don’t know. If we break above 4,000 and sustain it, the sky is the limit at this point.

There isn’t a real way to measure what the next target is from a technical analysis standpoint, until you start talking about Fibonacci extensions and things like that, which generally proved to be unreliable. So, with that being the case, breaking above 4,000, I think, could kick off the next leg to probably $4,100. Gold does tend to move in $100 increments, so that would be my best guess at that point. That being said, I do prefer to buy pullbacks all the way down to at least $3,800 on average.

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