Gold Price Outlook – Gold Continues to See Supporters Heading Into FOMC

Gold Markets Technical Analysis

The gold market has turned around to show signs of life right at the crucial 50 day EMA as it looks like we are going to continue to see traders take advantage of dips in the gold market. This makes quite a bit of sense because quite frankly, we’ve been in a massive uptrend. And despite the fact that the elections in the United States are over, we still have plenty of reasons to think that gold will eventually march much higher. It’s not as if the United States is suddenly going to stop spending money.

I postulate that it’s the exact opposite, neither candidate was going to rein in spending. And I think what you’re seeing here is the market realizing this. With this being said, we do have the FOMC interest rate decision later in the day, and that of course is something worth watching, and probably brings in quite a bit of volatility, but really at this point, I think you’ve got a situation where value hunters have come back into the marketplace, and they just look at this as a nice opportunity.

Underneath we have the $2,600 level, an area that I think offers quite a bit of support. So, if we break down below there, maybe we reset a little bit, but I do find it interesting that we are turning around almost instantly in what has been a massive uptrend and really at this point in time something that’s been a pretty obvious trade most of the year.

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