Gold Price Outlook – Gold Looks Likely to Search for Buyers at Lower Prices

Gold Technical Analysis

The gold market initially rallied during the trading session on Tuesday, reaching toward the crucial $3,900 level, but has since fallen quite a bit. It does make a certain amount of sense that we would pull back because quite frankly, the market has been straight up in the air for so long that sooner or later, you have to discover gravity. At this point in time, I think any pullback ends up being a buying opportunity.

And there are several areas that I would be interested in getting involved in it. The $3,800 level is an area that I would be very interested in, as it was the previous target based on the ascending triangle. We’ve hit that. We’ve broken through it. So, it wouldn’t surprise me at all to see the market pullback to it in order to find more buyers.

Even if we break down below there, the $3,700 level, the $3,600 level, and even the $3,500 level, all offer potential floors in the market. I’d be looking for a drop and then a bounce that I can play into to the upside. I do think that they are going to do everything they can to get gold to raise towards the $4,000 level. And ultimately, this is a market that has been very bullish, and the momentum alone probably will get it to $4,000 before it’s all said and done.

That being said, you also have to keep in mind that the geopolitical tensions in Ukraine are getting worse, not better. So that also helps gold. And then central banks around the world, of course, are playing right into it. They’re buying gold. The Federal Reserve is expected to cut rates, etcetera. So, there are plenty of reasons for gold to continue higher, but we are stretched. That’s all this is.

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