Gold Price Outlook – Gold Market Continues to See Buyers

Gold Markets Technical Analysis

The gold market has rallied a bit during the early hours on Friday, we continue to see a lot of support. All things being equal, this is a market that I think continues to see a lot of noise right around the 50 day EMA. But ultimately, I do think that we go higher given enough time. The geopolitical situation continues to favor gold going higher due to the hot war in Ukraine and the tentative peace deal between Hezbollah and Israel, but we still have Hamas and Israel going at it.

The Houthis are going at it with pretty much anybody in the West that they can get their hands on and a whole litany of issues. The concerns about central banks jumping into the market and supporting gold also would make me very hesitant to short this market with Russia, India, China, Indonesia, and several other central banks buying gold. It’s difficult for it to go lower for a sustained amount of time.

Even if we were to fall from here, I think somewhere near the $2,600 level. And then of course, the trend line that sits just below there has plenty of buyers willing to get involved and pick up cheap ounces of gold. Volume could be a little bit iffy at times going forward between now and the end of the year, but the last couple of days have been fairly stable and I think that’s a sign that maybe that sell-off was a little over done.

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