Gold Price Outlook – Gold Testing 50 Day EMA

Gold Technical Analysis

The gold market has fallen during early trading on Monday, where we have found ourselves testing the crucial 50 day EMA. That being said, the market is essentially going back and forth between the $3,200 level and the $3,500 level, as we consolidate after a huge run higher. Gold has been trending sideways for a couple of months now and at this point one has to wonder where we will go next. Ultimately, one would assume that the market will break to the upside, typically speaking, consolidation leads to continuation, but there’s no guarantee of it, obviously.

If we were to break down below the swing low that actually broke down below the $3,200 level, then we could find ourselves at $3,000 pretty quickly. On the other hand, if we break to the upside and see the $3,500 level broken, then it opens up the next leg higher, as we have seen multiple times in the past. And I think at that point, gold really starts to take off, perhaps going to the $3,800 level based on the measured move.

Either way, right now, I don’t have any interest in shorting. I do think that pullbacks offer buying opportunities, but I don’t know if we have the reason to break out yet. We may just stay in this range for the short term, waiting for some reason to get moving again. Range traders will like this market at the moment but must be patient.

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