Gold Price Outlook – Gold Continues to See Choppiness

Gold

The gold market initially gapped a little bit higher to kick off the week but then fell. At this point, I think gold is getting a little exhausted here, and it does make a certain amount of sense.  And in fact, the market sooner or later had to find gravity. That’s essentially what we just saw. So, with that being the case, you’ve got a scenario where traders continue to think of this through the prism of tariffs, geopolitics, and of course, a potential recession. I do think gold still has plenty of demand out there, but I also think that you probably get an opportunity to find a little bit of value. The $3,200 level would be an area of interest for me as it is an area that previously had been pretty significant resistance. So technical analysis suggests that you could see a bit of support through market memory.

That being said, I’d be a bit cautious about just jumping in right away. What I would like to see is a pullback to that area and then a bounce. I would buy that bounce. On the other hand, we could just go sideways for a while because time is a way that sometimes the market will work off excess that we’ve seen. And that’s very possible and that’s fine too. What I’m saying basically is that you do not want to be chasing gold all the way up here as the move has already played out pretty significantly up to this point.