Gold Price Outlook – Gold Looks for Momentum

Gold Technical Analysis

The gold market continues to be fairly choppy as the $4,200 level continues to offer support. Nonetheless, this looks a little bit like a bullish flag, and it most certainly is a bullish market. I don’t want to short gold, despite the fact that volume has been drifting lower for a while now. I suspect this is a market that probably will do better than silver once it’s all said and done, despite the fact that silver has basically been on fire because central banks are out there buying gold, and I think it will probably continue to for quite some time.

Key Technical Levels to Watch

If we do break down below the $4,200 level, the 50-day EMA sits just above the crucial $4,000 level, and beyond that, it’s really not until we break down below $3,950 that I worry about the overall trend. To the upside, the $4,400 level is an area that I think we probably target eventually. And despite the fact that the US dollar has been soft over the last couple of days, you’ll see that gold really hasn’t done much. It’s breaking the anti-US dollar correlation, at least at the moment, mainly due to the fact that there are a whole plethora of other things out there driving gold, not the least of which will be interest rates.

Over the longer term, it still looks bullish, but again, watch that $3,950 level because if we break down below there, that changes everything. Recently, we’ve made a higher low followed by a higher high, and we at this point are still in an uptrend despite the fact that we have stalled a bit.

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