Gold Price Outlook – Gold Continues to Look at Shrinking US Dollar

Gold Technical Analysis

The gold market initially pulled back just a bit during the early hours on Wednesday to test the $2,900 level for support. We have in fact found support in that area. So now the question is, can we continue to go higher? The $2,950 level above is a significant short-term resistance barrier and if we can break above there, then I think you’ve got a real shot at the gold market looking towards the $3,000 level.

Short-term pullbacks will not only see the $2,900 offer in support, but if we were to break down below there, the $2,850 level is your next support level, with the 50-day EMA coming into the picture. Keep in mind this is a longer-term uptrend, and we are seeing the US dollar shrink a bit, and as a result, the gold market probably gets some type of boost from that alone. All things being equal, I do think that we are in the midst of forming a big bullish flag and that should send this market much higher.

If it does, in fact kick off, we could be looking at a move to $3300 or so. For now, my target is just $3300, and only if we can slice through the $3,000 level easily. I do question that because it is a large round psychologically significant figure. And anytime you get one of those, a lot of times you get options from traders and bigger traders trying to collect profit or even trying to turn the market around. So, watch the 3,000 level if and when we break out.

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