Gold Price Outlook – Gold Continues to Look Supported Underneath

Gold Markets Technical Analysis

The gold market has pulled back just a bit during the early hours on Friday, as it looks like we are still trying to consolidate and sort out where we are going after the US election and the Federal Reserve interest rate decision. That being said, the 50 day EMA underneath offers quite a bit of support near the 2630 level and is rising. At this point in time, if the market does pull back to that area, I would anticipate that there will be value hunters looking to get involved here. After that, you have the 2600 level, which is also significant support based on both psychology and the previous action that we have seen, so I think you need to pay close attention to that.

With interest rates around the world all over the place but perhaps more importantly, a lot of economic uncertainty it does make a certain amount of sense that gold would rally. At the 2800 level I think that we have a significant amount of support just waiting to happen for gold. If we can break through it, that could be your next floor. In the meantime though, you have to look at it as a potential ceiling and resistance barrier.

I suspect that short-term pullbacks will continue to be thought of as valuable opportunities in a market that has been extraordinarily bulliss and let us not forget, uncertainty tends to favor gold anyway, so I suspect that we will have a significant amount of bullish traders out there.

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