Gold Price Outlook – Gold Slumps Early on Thursday

Gold Technical Analysis

The gold market has pulled back just a touch during the early hours here on Thursday as we wait for the CPI numbers coming out of the United States and the ECB interest rate decision coming out of Europe. All things being equal, though, this is a market that I want to be part of. And I look at any pullback as a potential buying opportunity, because quite frankly, the momentum itself will push gold higher. The ascending triangle that we have broken out of certainly suggests that we have a much bigger move ahead of us, as it is so obvious and many will have noticed it.

And when you look at the measured move of the ascending triangle and suggest that we could go to the $3,800 level. Any dip at this point in time becomes interesting, and I have no interest in shorting gold as the Federal Reserve is going to cut rates. Other central banks are going to have to do so sooner or later, as we’ve already seen New Zealand do. And then, of course, you have plenty of geopolitical concerns. If we start to see the stock markets roll over, that will give us just another reason to own gold, all things being equal. This is a market that I think continues to see a lot of people underneath looking to get involved and therefore anything that remotely appears to be valuable is something that traders should be paying attention to.

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