Gold Price Outlook – Gold Continues to See Buyers

Gold Technical Analysis

The gold market has been positive in the early hours on Thursday as we continue to press to the upside. But quite frankly, I think we are in an area that might be a little bit difficult to get above without a push. We’ve gotten fairly weak inflation numbers coming out of the United States, and that may have a little bit of an influence here. But quite frankly, with the US dollar getting hit as hard as it did in the early hours, I’m a little surprised that gold hasn’t taken advantage of this. So perhaps that correlation is starting to fade a bit. With this being the case, I am looking at gold with a buy on the dip mentality. I don’t necessarily think that you want to short gold.

I just think that it’s possible that it’s going to be very noisy along the way. Ultimately, I do think that we will get back to the $3,500 level, but it’s probably going to take some work to get there. So, with that in mind, I would be somewhat cautious here, I would prefer to see a move towards the $3,300 level that then bounces, that I could take advantage of. If we don’t get that, we could race towards the $3,500 level. But for me, it’s obvious there’s a lot of resistance up here and we just need some type of bigger announcement or bigger statement or something to get gold moving.

I really don’t have any interest in shorting this market, but if we broke down below 3,200, we’d have to start to rethink some things, with $3,000 underneath being what I consider the actual floor in the market where we have to look at the overall trend and see if it’s holding. Right now, though, the odds still favor the upside. I just think we’re kind of stuck at the moment.

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