Gold Price Outlook – Gold Continues to Launch Higher

Gold Technical Analysis

The gold market has rallied to show signs of extreme strength during the trading session on Wednesday in the early hours. At this point in time, it does look like a market that, quite frankly, is going to continue to go much higher. But when you look at the previous technical analysis, it’s probably worth noting that we have just hit basically the target from the measured move of the bullish flag. So, we can stop talking about that. Now the question is, where do we stop?

I think $3,500 is a very realistic target, although I do understand that we are overbought. I think you could very well see a short-term pullback, and ultimately, I think that pullback will end up being a buying opportunity for most traders out there. So, with that, I’m looking for opportunities to pick up cheap gold. I think we probably still have quite a ways to go, especially as the tariff war doesn’t really seem to be calming down. We have central banks out there buying gold. And furthermore, there are a lot of recessionary fears. So, this is a classic protection play for large money players out there.

So, I have no interest in shorting, I think the hard floor is at the $3,000 level. So, I would be stunned if we broke down below there, at least not in this environment. I don’t think it happens. The $3200 level probably offers support between here and there, and again at the $3250 level. So, with all of that being said, volume’s picking up. We are launching. This is a market that’s going higher.

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