Gold Price Outlook – Gold Continues to See Profit Taking

Gold Technical Analysis

Gold initially tried to rally during the trading session on Friday, but then dropped pretty significantly to test the lows of the previous session pretty early. So, the question at this point in time is whether or not we are going to consolidate or if we need to pull back a bit in order to attract value hunters. After all, gold shot straight up in the air for quite some time and now it looks like, at the very least, we are trying to find some type of stability, as markets cannot go in one direction forever. With that being the case, it does make a lot of sense that maybe we hang out in this area between $3,200 on the bottom and $3,500 on the top.

In general, this is a market that I think will also continue to favor the upside overall. So, I do like buying dips, but I don’t like the idea of getting too cute here. This is a market that I don’t want to short, nor do I feel the need to race out there and try to chase a trade that could take some time. The closer we get to $3,200, the more likely I am to get involved and start buying. But as things stand right now, I think it’s more or less a wait and see for the dip.

Once you get that, then you can start to look for the V pattern once we bounce. Generally, that is how I approach these things. Keep in mind that some traders may be taking profit due to the fact that we are heading into the weekend as well.

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