Gold Price Outlook – Gold Continues to Look Bullish

Gold Markets Technical Analysis

Short-term pullbacks continue to show signs of buying opportunities in the gold market and it is worth noting that we are testing the top of the previous daily range. Ultimately though, we do have the CPI number coming out on Wednesday and I think this has a major influence on where we go next. It looks to me as if the gold market is currently looking to try to break out towards the $2,700 level but I also believe that the market will continue to see a lot of short-term pullbacks along the way, but I think those pullbacks continue to get bought mainly because we are in an uptrend to begin with, and we also have to keep in mind that there are plenty of geopolitical reasons to believe that gold will continue to soar. That being said, if inflation is extraordinarily high during the session on Wednesday, that could have a major impact as well.

So far, a strong US dollar does not seem to be hurting gold, but watch the reaction after the CPI announcement, because that could tell you a lot of what you need to know. A breakdown below the $2,600 level then puts the market on its back heels, as we will have to pay close attention to the uptrend line. The $2,500 level underneath there, I think it’s the floor in the trend at the moment. So as long as we save up there, we are more or less looking to buy the dips. It’s just a matter of timing at this point. I do like gold. I do think eventually it goes higher.

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