Gold Price Outlook – Gold Sluggish on Monday

Gold Technical Analysis

The gold market had initially tried to rally a little bit during the trading session on Monday, but you can see we have drifted a little bit lower, and we are sitting just below the 50 day EMA. It’s also worth noting that there is an uptrend line just below, so we’ll have to see whether or not we are going to break down below there. If we do, then obviously that would be a big deal, perhaps sending gold down to the $2,500 level.

As things stand right now though, I think the market is probably more likely than not to consolidate a bit, mainly due to the holidays and of course the fact that liquidity is an issue. If we break above the 50 day EMA, then it’s possible that we could see this market go looking to the $2,700 level.

Keep an eye on interest rates in America because if they continue to rise in the bond markets, that does work against gold, but the negative correlation between the US dollar and the gold market seems to have been broken this year, which does happen from time to time. So, it’s not a huge surprise. But in general, I think you’ve got a situation where gold continues to be very noisy. Watch the 50 day EMA. It gives you a little bit of a heads up as does the uptrend line that sits just below.

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