Gold Price Outlook – Gold Continues to See Overhang

Gold Markets Technical Analysis

Gold markets have been somewhat back and forth during the early hours on Monday as we continue to just kill time underneath the 50-day EMA. With this being the case, we also have to face the uptrend line as well. So let’s pay close attention to the $2,600 level in this environment. If we can turn around and break above the 50-day EMA, then it’s possible that the market goes looking to the $2,700 level. But really right now, we don’t have any reason for that to happen.

That’s the biggest takeaway from here, even though the technical analysis suggests that perhaps we’re in an area where something could happen. We’re at the end of the year, there is no liquidity. Furthermore, interest rates in America continue to climb and that does work against gold eventually. So we’ll see how that plays out. Right now, I’m pretty neutral on this and have no real interest in putting money to work, but if we were to break down below the $2,500 level, something that’s not going to happen quickly, then that could change the entire trend.

Breaking above the 50-day EMA might be the one signal that I would look at this time of year, but even that would be short-term at best. I suspect gold is a very neutral market for a while, maybe even mimicking what we had seen in late spring, early summer this year where we just kind of bounced around. I’m not negative about gold. I’m just not overly positive at the moment.

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