Gold Price Outlook – Gold Continues to See Strength

Gold Markets Technical Analysis

The gold market rallied a bit in the early hours, gaining about three quarters of a percent as New York comes online and I think ultimately, we’ve got a situation where gold is going to break out eventually, but it’s also possible that we could see this market pullback in the meantime in order to build up the necessary momentum to go higher. The market is somewhat sideways still. We haven’t really broken out yet, but I do think that a short-term pullback only invites more purchasing of gold as there is almost certainly going to be a major problem just waiting to happen with various economies and currencies around the world.

In fact, I really like gold, but I like it even more against other currencies than the US dollar. If we do break higher, then it’s likely that the market will go looking to the $2,800 level. Short-term pullbacks, I think, continue to be thought of as value played. The 50-day EMA right around the $2,650 level, think at this point in time will be offered a support level and a dynamic floor in the market.

I have no interest in shorting gold anytime soon and I look at any pullback ads and potential value play, but I also recognize that gold, like pretty much everything else right now, is apt to be fairly volatile as the markets come to terms with the uncertainty of the world at the moment.

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