Gold Price Outlook – Gold Continues to Levitate

Gold Technical Analysis

Gold markets have been back and forth in the early hours on Monday, which should not be a huge surprise considering that we are so extended at the moment. After all, the market had shot straight up in the air during the last three sessions, gaining a passive amount of real estate, about $250 in the second half of last week. That being said, I do anticipate that there will be a little bit of a pullback sooner or later. And quite frankly, I think that pullback will be a buying opportunity for those looking to find value in a market that has basically run away from us.

There will continue to be major reasons for gold to continue going higher, not the least of which will be the uncertainty involving tariffs, but also the uncertainty involving how global growth may or may not occur from here. After all, the tariffs are coming on the back of what looks to be a slowing US economy anyway, and when the US slows down generally, that means everybody else does as well.

Even though Germany is actually coming out of a recession there are a lot of questions out there when it comes to geopolitics as well. And that, course, helps gold go higher. Also, a shrinking US dollar only adds more fuel to the fire, but that may be coming to an end as we are getting a little exhausted at this point, shorting the US dollar.

Maybe that’s what causes the gold market to pull back. I believe there’s a hard floor near the $3,000 level that you will have to pay close attention to as it has a lot of psychology attached to it and now has the 50 day EMA and a recent bounce from that area backing up that idea.

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