Gold Price Outlook – Gold Looking For Momentum as it Builds a Base

Gold Markets Technical Analysis

The gold market has initially dipped during the trading session on a Friday, only to turn around and show signs of life again. At this point, if we get any type of upward trajectory here, it’s very likely that we could get a significant bounce. We are looking at the $2,600 level above as a potential barrier. So that will be worth watching. And if we can get above there, then you have to deal with the 50 day EMA. That of course is a major technical indicator that a lot of people will be watching. Anything above there, then I think you have real momentum.

Keep in mind that the US dollar has been like a wrecking ball against precious metals as of late, so we’ll have to wait and see how this plays out. But at this point, we are at least doing the primary work of slowing down the descent and trying to at least catch our breath. If we can get any type of momentum to the upside, this might end up being an excellent buying opportunity.

But like I said, we’re just in the base building process. If we break down the $2,500 level will be support, then anything below there starts to get a little bit on the dicey side. All things being equal though, there are plenty of reasons to think that gold will go higher over the longer term, So I am more inclined to the upside, I just don’t have the confirmation quite yet.

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