Gold Price Outlook – Gold Trying to Bounce on Wednesday

Gold Technical Analysis

The gold market has gone back and forth during the course of the trading session on Wednesday as we head into the new year. That being said, the market is eyeballing the $4,400 level as a potential barrier. If we can break above there, then it opens up the possibility of a move to the $4,500 level. This is an uptrend that’s been very strong, but of course, it’s unfortunately being influenced by the outside, specifically silver.

Silver has been out of control, and that causes a major problem for the gold market. That being said, this is an uptrend that I plan on participating in, and if we can recapture the $4,400 level, I’m likely to be a buyer. The previous ascending triangle does measure for a bigger move towards $4,900, but it makes sense at the end of the year; we can’t get there quite yet. That being said, this is still a bullish market from what I can see.

Silver needs to settle down

Furthermore, silver needs to settle down, and if we can get that to happen, then it opens up the possibility of a slow grind higher, just like we had seen most of the year. Central banks continue to hoard gold, and interest rates continue to be looked at as going down. So, and geopolitical issues and debt issues, I think it all points to higher gold. I just think that we’re going to have more of a sustainable rally than what we’ve seen at certain times over the last couple of months. This is a market that will go back to being quietly bullish soon I believe.

This is an uptrend that I plan to participate in, and if we can recapture the $4,400 level, I’m likely to become a buyer.

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