Gold Price Outlook – Gold Has a Wild Ride on Monday

Gold Markets Technical Analysis

Gold markets initially sold off during the early part of the session on Monday, as traders undoubtedly were looking for liquidity, they obviously would have been caught on the wrong side of a lot of trades. Basically, anything short of the dollar was losing money after the tariffs were announced. So, with that being the case, it does make a certain amount of sense that gold has seen itself sell off as people were trying to close out winning positions to pay for losing ones, but then turned around to show signs of life again and in fact, at this point, it looks like we are going to do everything we can to break out to a fresh new high.

If we can do so, that could be a major turning point and the next leg higher just waiting to happen. Ultimately, I do think that gold does break out to the upside and goes much higher, but I also recognize that we are a little extended, so it wouldn’t be overly surprising to see gold do a little bit of a parabolic move in the short term, only to pull back pretty significantly later.

I do believe gold eventually goes to the $3,000 level over the longer term, but it may take some time to get there. The quicker we get there, of course, the more likely it is that the pullback will be brutal. Regardless, I look at any pullback in gold at this point in time as a potential buying opportunity in a larger uptrend that has been very strong over the last year or two.

For a look at all of today’s economic events, check out our economic calendar.