Gold Price Outlook – Gold Rallies Early on Wednesday

Gold Technical Analysis

The gold market has bounced ever so slightly during the early hours here on Wednesday, which is interesting, considering we are sitting right here at the 50 day EMA. So, one would have to assume that technical traders are watching this very closely.

Ultimately though, when you see this market, you should also recognize that there has been a lot of noise and a lot of choppiness. And then of course we have to pay attention to the fact that the Jackson Hole Symposium is going on at the moment, and that more than likely will produce some type of reaction due to the fact that everybody on earth at this point is looking to pay attention to Jerome Powell and whatever it is he may or may not say after that meeting. So, I think ultimately you have to look at this as a market that’s in a longer term uptrend, but it’s probably going to be very choppy in general.

And with that, I think you also have to be a bit patient with any moves that you are looking for. Longer term, I do think that this is a scenario where gold will reach the $3,500 level again, but it may take some time to get there. We just don’t know. The $3,500 level being broken to the upside is very bullish. And I think that it opens up a move to roughly $3,800 based on the $300 range that this ascending triangle is setting up. Even if we were to break down from here, I think there’s plenty of support near the $3,300 level as well as the $3,200 level to keep the market afloat.

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