Gold Price Outlook – Gold Continues to See Pressures

Gold Markets Technical Analysis

The gold market fell pretty significantly during the early hours on Thursday, but it does look like we are starting to turn things around and show signs of life again. Because of this, I think you’ve got a situation where eventually we will recover and bounce, but the recent US dollar strength has been like a wrecking ball for gold and in all fairness, several other assets. We did break down below a significant trendline so it’ll be interesting to see how this plays out over the next few sessions, as the oversold conditions could be a major short-term factor. However, the longer-term isn’t as clear.

Will this end up being a major trend shift, or will it be what is known as a throwover? If we turn around and break above the $2,600 level, then I think you’ve got a real shot at some type of recovery. With this being said, I think you have to also look at the $2,500 level underneath as crucial and a potential floor in the market. Anything below that level would be rather ugly, but as long as the US dollar continues to rock it higher gold is going to suffer. So do keep that in mind as the dollar has been a wrecking ball for most things, and at this point in time the interest rates in America continue to see upward pressures and therefore, the bonds in the US are attractive.

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