Gold Price Outlook – Gold Bonces After Initial Sell Off

Gold Technical Analysis

The gold market initially fell during trading on Thursday but has turned around quite nicely to show signs of life again. By doing so, this is a market that I think is trying to find its floor. We basically swept below the $3200 level, wiped out all that liquidity and now people are looking to see whether or not the overall uptrend can continue. With that being said, I think you have a situation where traders are going to look at this as a longer term uptrend and potential value in a trend that has been obviously very strong.

So, with that, if we can get a daily close above the $3,200 level, I suspect you may see more momentum come back into this market. You could even see the market try to get to the $3,500 level before it’s all said and done, which was the most recent swing high and of course is a large round, psychologically significant figure, so do pay attention to that. On the other hand, if we were to break down below the $3,100 level, then I think it opens up a move down to the $3,000 level, which has shown itself to be important more than once, and of course is an area that is a large, round, psychologically significant figure also.

Because of this, I believe this is a market that is a buy-only market still, and I’m just looking for either momentum to the upside or some type of value closer to $3,000 below, as it has been important to the market more than once.

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