Gold Price Outlook – Gold Surges Higher at Wednesday Open

Gold Technical Analysis

The gold market jumped to kick off the trading session here on Wednesday as it looks like we are trying to do everything we can to break out above the $4,200 level.

If we can, it opens up the possibility of going to the $4,400 level and beyond. Short-term pullbacks continue to be buying opportunities in a market that is obviously bullish. And I think that the $4,000 level, a large round psychologically significant figure and an area that’s offered significant support previously, is your floor. The 50-day EMA is in that neighborhood as well, so that all lines up quite nicely.

In fact, I have no interest in shorting this market until we go below the $3,950 region, which, at that point in time, we’d have to really look at the health of the trend.

Buyers Continue to Make Noise

Ultimately, it certainly looks as if the buyers are willing to jump in, but you also have to keep in mind that Thursday is Thanksgiving in the United States, so the futures markets will be closed. They will have some after-hours in pre-market hours electronic trading. So, it’s not like the market won’t move at all, but it won’t move much.

Thursday will lead into Friday, and in the United States most Americans don’t go to work the next day. So generally speaking, what happens is that although Friday will have more volume, it still will be a bit thin. It’ll be interesting to see if we pull back here, because if we do, that means that we stay in a consolidation range. But if we do break well above the $4,200 level. That’s a strong sign at that point.

For a look at all of today’s economic events, check out our economic calendar.