Gold Price Outlook – Gold Continues to See Support

Gold Markets Technical Analysis

Gold markets rallied a bit in the early hours on Wednesday as we continue to see a lot of noise right around the 50 day EMA. Quite frankly, the 50 day EMA is a very interesting area to see a certain amount of support and noise. And I do think it’s probably only a matter of time before we see the market participants come back into the gold market and try to push it higher, mainly due to all of the geopolitical concerns. Yes, Israel and Lebanon appear to be heading towards a ceasefire, but that doesn’t do anything with the war in Ukraine. Because of this, I think that there will be a geopolitical push higher as far as the gold market is concerned for some time now.

Furthermore, central banks around the world continue to buy gold, so it puts a little bit of a natural bid in this market. And then again, we have to worry about massive amounts of profligate spending by the world’s largest economies, especially as we are now starting to see central banks around the world cut rates that should help gold. Beyond that, we just got a nice uptrend and there’s no point in fighting it. There is an uptrend line near the 2,575 range. And then again, we have support in the 2,500 area. So all things being equal, I do think gold remains a buy on the dip market. And I do think that it will eventually go looking to the $2,800 level where it had pulled back from previously.

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