Gold Price Outlook – Gold Quietly Testing Barrier

Gold Technical Analysis

Gold markets have been pretty stagnant during the Thursday trading session, which is not a huge surprise considering that the market itself is dealing with the idea of the Americans not really being around. It’s Thanksgiving in the United States, so the futures market will shut down for a while, and therefore, I wouldn’t expect participation to be particularly interesting.

The $4,400 above has been significant resistance. Now we find ourselves testing the first resistance area below there, which is $4,200. It is a positive market overall, but the question is what happens when we come back on Friday? If we pull back, then you have a significant floor at the $4,000 level where the 50-day EMA currently resides. And I think that’s actually healthy if it does in fact happen because it gives the market a little bit of consolidation to deal with.

Major Support and Breakout Levels

Therefore, people are getting used to this expensive gold. Anything below $3,950 would be very negative and could throw disarray into the market. But right now, I just don’t see that happening. So, I am looking at this as a buy on the dip type of scenario. And if we can break above the $4,200 level cleanly, then $4,400 level gets targeted. Anything above there? We’re in no man’s land because we’ve never been there before.

Nice strong uptrend. Volume has been dropping but doesn’t seem like anybody cares. So, if that’s going to be the case, and I certainly believe that gold has a place in all portfolios, this may remain bullish for longer than we anticipated.

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