Gold Price Outlook – Gold Continues to Look Strong on Thursday

Gold Markets Technical Analysis

The gold market rallied a bit during the early hours on Thursday, as it looks like we have a scenario where breaking above the 50 day EMA has perhaps brought in more buyers. The market is more likely than not to continue to favor upward movement towards the $2,800 level. The $2,800 level of course is an area where we had pulled back from previously, so I think that has a lot to do with perhaps topping out the market. If we can get above there, then that opens up the $3,000 level. Short-term pullbacks, I think, continue to see plenty of support near the $2,600 level. And at this point in time, I think there are plenty of reasons for gold to go higher, even beyond the chart.

While the chart does show a lot of momentum, the reality is that the geopolitics are getting worse in Ukraine, not better. Because of this, some asset managers will put a little bit more money into the gold market in order to protect wealth. Furthermore, we also have central banks around the world doing everything they can to accumulate gold, mainly China, Russia, Indonesia, India, and several other big ones, especially in that part of the world. So, I think gold has quite a bit of momentum and it is a buy on the dip market. I just don’t have any interest whatsoever in trying to get short of this market anytime soon, as it is so strong.

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