Gold Price Outlook – Gold Continues to Approach $3000

Gold Technical Analysis

Gold markets have rallied a bit during the early hours on Monday to touch the $3,000 level again, but again, the $3,000 level has offered a little bit of resistance. All things being equal, I do think we go above there, but it might take a little bit of work. There’s a lot of psychology attached to the $3,000 level. Short-term pullbacks at this point should end up being buying opportunities all the way down to at least the $2,900 level. So that’s how I approach this market, buying on dips.

On the other hand, if we get that daily close above $3,000, then I think we can start to think about approaching the target that the measured move suggests from the bullish flag, that would be $3,300. With the geopolitical uncertainty, the tariff wars and what’s going on with the US dollar, it’s not a real stretch to think that gold could rally another 10%, but it doesn’t mean that we get there next week. It might be several months, but that is what the technical analysis suggests.

As far as shorting gold, I have no interest in doing so, but would have to reconsider a lot of things if we were to drop below the $2,800 level. I’d have to see what the US dollar was doing at that point to get a real feel for whether or not it was just a severe pullback or a trend change. As things stand right now, there’s absolutely nothing on this chart or in the fundamentals that makes me want to go against the uptrend.

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