Gold Price Outlook – Gold Sits Still Early on Wednesday

Gold Technical Analysis

The gold market is fairly choppy as it looks like we’re going to form some type of quiet inside day in pre-market trading and once the open outcry session starts, we’ll have to see how things go. But I think a little bit of stagnation makes a certain amount of sense as we are hanging around the $3,800 level. And of course, I have seen gold take off to the upside for three days in a row. So, while I do think that we will go higher overall, a little bit of working off of the froth probably makes some sense here.

Short-term pullbacks should see plenty of support, and I think one of the most likely candidates will be right around the $3,700 level, as it was a bit of a magnet for price for about two weeks. Even if we break down below there, the 50 day EMA is now at $3,542 and rising. So, I think it’s probably only a matter of time before that opens up the possibility of offering dynamic support as well.

I have no interest in shorting gold. I think it’s just far too strong. And as a result, I’d be very hesitant to go in that direction. But having said that, I do recognize that a pullback does make a certain amount of sense. So, I look at that as an opportunity. Based on the ascending triangle, we were going to challenge the $3,800 level and that has been accomplished now. Quite frankly, I don’t know where this ends up, but $4,000 has become a very real possibility.

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