Gold Price Outlook – Gold Slightly Negative Early Friday

Gold Technical Analysis

At this juncture, we are certainly in a holding pattern as we are trying to determine whether or not the $4,000 level holds its importance. If the market were to break down below the $3,950 region, then that would be pretty negative. But ultimately, the 50-day EMA and the $4,000 level, I believe, will offer a certain amount of support.

If we do bounce from here, then we could be looking at a return to the $4,200 level, the most recent swing high. We made a very extreme swing high and then saw a ton of shorting pressure come into the market to reach towards the 50-day EMA and then bounce again, but the bounce was with less volume and wasn’t as high as the previous one.

With that being said, the fact that we have pulled back and made a lower high raises the question of whether or not we are going to make a lower low. If that happens, then that is the classic definition of a trend change. We’ll just have to wait and see. As things stand right now, I think gold definitely fares better than silver.

But in a relative sense, gold, of course, has the central banks out there continuing to buy it and is part of a lot of portfolios to begin with. So it’s part of why it’s a little safer than silver. Nonetheless, it certainly looks like we are at a major decision point, and it looks as if the market doesn’t really know what to do.

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