Gold Price Outlook – Gold Quiet in the Early Hours of Friday

Gold Technical Analysis

The gold market initially dipped a little bit after capping higher on Friday, but really at this point in time, we’re basically unchanged. Gold has been in a strong uptrend for quite a while, and I think that will continue to be the case. But even if we get a little bit of a short-term pullback, I think most people look at this as a buying opportunity.

Gold has been very strong for a couple of years and recently we have seen it break out of a massive ascending triangle that measured for a move to $3,800. We’ve hit that level, pulled back a bit, and now I think we’re going to try to revisit it. We do get the core PCE numbers coming out a little bit later, and that of course will have a major influence on what happens with perception on the US dollar and the Federal Reserve monetary policy.

But really at the end of the day, gold’s going higher for a lot of different reasons. It’s not just the Federal Reserve. Tensions in Ukraine are starting to ratchet back up between Russia and the EU. We also have central banks out there buying gold just to stabilize balance sheets. So, the “risk off” part of the market is a very real thing right now. And I think that continues to help gold go to the upside.

Pullbacks probably see a lot of support at the 3,700 level where we’ve gone sideways. On the other hand, though, if we do rally to the upside, I think we start to have the very serious conversation about possibly reaching the $4,000 level, which doesn’t sound that crazy at this point. I remain bullish.

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