Gold Price Outlook – Gold Recovers Early on Tuesday

Gold Technical Analysis

The gold market has rallied quite nicely in the early hours here on Tuesday in order to try to fight the massive selling pressure that we had seen during Monday’s bizarre session. Nonetheless, I think this is a market that is going to continue its overall uptrend anyway. So, I’m okay with buying this. I recognize that it could be a very noisy situation, and it could be a very volatile situation. And you could actually see this market turn around and start falling again. But this is the right direction, and you have to start somewhere.

Breaking Above $4400

So, because of this, I think this is a situation where now that we’re breaking back above $4400, I think we could go looking to the highs. But I also recognize that you don’t want to get too aggressive here at the end of the year. If we break down from here, the 50-day EMA sits at the $4200 level, and I think it is your floor in the market at the moment. Gold is being hoarded by central banks around the world and retail traders following momentum, as well as many nations trying to shore up balance sheets in a heavily debt-laden world. It makes sense that gold continues to go higher.

It is bouncing from a breakout point previously, and I think you’ve got a shot at this, trying to get to the upside, maybe capturing the highs again here in the next few weeks. I think we are going to slow down a bit, but we’ll just have to wait and see when the momentum comes back.

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