Gold Price Outlook – Gold Stalls a Bit in The Early Part of Wednesday

Gold Markets Technical Analysis

The gold market has gone back and forth in the early hours on Wednesday as we continue to see a lot of noisy behavior. With that being said, I think we have to look at this through the prism of whether or not we are going to finally get the pullback or if we’re going to go sideways in order to work off some of this excess froth. Gold has essentially been on fire as of late and therefore I do think that we need to do something.

After all, you can’t make the foolish mistake of just chasing something that has a lot of momentum. It’s a great way to lose money. That being said, previously there was a bullish flag, and that measured move does suggest that perhaps we have the $2,800 level as our target. After that, you could be looking at the $3,000 level and I do think that we probably get there given enough time.

But I also recognize that we have a scenario where traders will probably have to take a little bit of a breather. So bottom line, I do believe this is a market that’s ready for a pullback. We saw the first signs of it a couple of days ago when we ended up forming that shooting star. But right now, I think you’ve got to look at this as a market that will continue to be very strong based on geopolitics, based on interest rates around the world being cut, and of course, based on the fact that several central banks are out there buying it.

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