Gold Price Outlook – Gold Continues to See Noisy Volatility

Gold Markets Technical Analysis

Gold markets have pulled back just a bit during the early hours on Thursday, but it does look like the $2,900 level is going to at least attempt to offer a bit of support. Ultimately, I do think this is a market that given enough time will have to determine whether or not it wants to break out of this bullish flag, but it’s probably worth noting that the US dollar is a little oversold right here and therefore I think gold giving back some of those gains based on the US dollar probably makes a bit of sense. After all, sooner or later, gravity has to come back into play.

That being said, if we can break above the top of the bullish flag that we currently see on the chart, I think it’s difficult to underestimate just how powerful of a signal that might be. Breaking above the top of that flag could kick off a move all the way to the $3,300 level, although I don’t necessarily think that would be an easy move to make, but it certainly looks like it would be a move that could very well happen over time.

Short-term pullbacks should continue to see plenty of support, especially near the 50-day EMA, which is consequently at the bottom of the flag as well. So, with all of that being said, I think you have a buy-in on the dip market, and if we do get a pullback, I think you have to look at this as an opportunity to take advantage of, not necessarily, something to be overly concerned about.

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