Gold Price Outlook – Gold Markets Continue to Pull Back

Gold Technical Analysis

Gold markets have dropped again during the trading session on Wednesday as it looks like we are giving up some of the momentum that has been such a major driver of where things go here. That being said, it’s not necessarily that we are going to see the trend change suddenly. It’s just that things got way too out of hand. In fact, it would not surprise me at all to see gold go lower from here. And quite frankly, I would welcome it. I would prefer to buy gold on a pullback. I think the $3,200 level would be an excellent place to start buying. But there’s the question as to whether or not we ever get down there.

Because of this, I have to watch it on a day by day basis. And it does look to me like we could possibly go sideways here as well. Remember, there are two ways to work off excess froth in the market. The first one is the most obvious and that is a pullback and then a bounce to continue. But the other one involves just simply going sideways and the market readjusting getting comfortable with the idea of the new price.

I’m not sure which one we are doing here. But the fact that we have bounced off the lows of the day suggests that we may just go sideways. Again, I would prefer to buy gold at a lower price, perhaps the $3,200 level or even better, the $3,000 level. But I don’t know if we get that. Either way, I will not get short of this market. It is just far too strong.

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