Gold Price Outlook – Gold Sees Consolidation in Early Session

Gold Technical Analysis

Gold markets continue to be very noisy on Thursday as we initially fell, but we have turned around to show some signs of stability. Ultimately, I think this is a market that’s just looking for some reason to go higher. The question, of course, is whether or not we need to pull back first in order to build up enough pressure to do so.

At the moment, there really isn’t too much on the economic calendar, I think other than weekly unemployment claims in the United States and GDP in the UK to get things going, neither of which I think is going to be a major driver of what happens here.

I do like the idea of buying pullbacks, and although we already got one earlier in the day, it wouldn’t surprise me too much to see more of the same. The $4,400 level should continue to be a major floor in the market with the 50-day EMA racing towards that level as well.

Testing $5,000 Technical Analysis

To the upside, the target could be as high as $4,900, as the measured move of the ascending triangle does suggest that. Personally, I think we are going to at least test the idea of $5,000 an ounce. I just think it’s too big a target; markets like those big targets.

The question, of course, is how long. I think it does take a little bit longer than people think, although I’m thinking in a few months, not a long, long time. We could get there quicker, of course, with geopolitics being the way they are at the moment. But between that, the overall trend, and central banks out there accumulating gold, I think this remains extraordinarily bullish.

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