Gold Price Outlook – Gold Continues to Look Favored by Investors

Gold Markets Technical Analysis

The gold market has rallied a bit during the early hours on Tuesday, but at this point in time, I think short-term pullbacks will continue to be buying opportunities as we see quite a bit of volatility, but upward momentum is by far the biggest driver of what’s going on here. In general, I think you’ve got a situation where people are trying to protect their wealth and the market itself is trying to form a bit of a bullish flag. We’ll just have to wait and see if that actually plays out.

Regardless, I think there are plenty of reasons for gold to go higher, not the least of which probably would be geopolitics. There’s so much going on right now. It’s absolute chaos around the world. We also have to keep in mind that central banks around the world are cutting rates, and several of the larger ones are actually buying gold, so that provides a little bit of upward pressure as well. I don’t have any interest in shorting this market, but if we do start to fall in the gold market, I think there are plenty of areas you can start to look for value.

The $2,700 level would be one, and then after that, the $2,680 level would be the next one. The 50-day EMA is rising towards that area, but it’s got a ways to go before we get there. I do believe based upon the previous bullish flag that the measured move is to the $2,800 level. But beyond that, I think we probably go looking to 3,000 before it’s all said and done.

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