Gold Price Outlook – Gold a Touch Sluggish in Early Thursday Trading

Gold Technical Analysis

Gold markets did try to continue to rally during the Asian session, but at this point, it looks like we are in fact going to pull back just a bit. That does make a certain amount of sense, mainly due to the fact that we have rallied over 10 % in just six sessions or so. With that being said, I do think that the uptrend is very intact, and I certainly don’t want to be a short seller of gold, but that doesn’t mean that you should be chasing it all the way up here. Previously, we had formed a bullish flag, the measured move was for the level $3,300, which we have reached.

So now, technical traders will be looking for some type of clue as to where to go next. Fundamental traders will continue to look at the fear out there as gold is a safety asset. I suspect we are probably pretty close to some type of pullback. And I would love to see a pullback toward the $3,200 level as it was a major resistance barrier previously.

And therefore, from a technical analysis standpoint, you would expect a certain amount of market memory there. I do have a target of $3,500 now and while that sounded insane just a couple of months ago, right now it looks like a given. I think gold will continue to do well during the tariff negotiations and tension, as well as all of the geopolitical issues going on at the same time. Furthermore, have central banks out there buying gold hand over fist and the US dollar has been soft.

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