Gold Price Outlook – Gold Continues to See Support

Gold Markets Technical Analysis

The gold market rallied a bit during the trading session in the early part of Friday as the jobs number ended up missing a bit, and therefore, it looks like traders are starting to focus on the idea that perhaps the Federal Reserve will cut rates. Whether or not that’s actually true remains to be seen, but 25 basis points seem to be on the table for the next meeting. Short-term pullbacks at this point in time should end up showing an opportunity for picking up a bit of value from what I can see, and therefore I think you have to understand that.

What we are just going to continue to see is a lot of value hunting and dip chasing, if you will. The $2,700 level underneath is a major support level just waiting to happen as it was previously a resistance barrier. I think ultimately what you’re looking at is a market that’s just going through the normal undulations as we go higher and therefore, it doesn’t really surprise me that we pulled back now we’re bouncing.

The $2,800 level above is an initial target based on the bullish flag from previous trading and the measured move. But truthfully, I think what we’re looking at is a situation where the market is probably eventually going to try to go looking to the crucial $3,000 level. Quite frankly, geopolitical issues aren’t getting any better. The interest rate markets are all over the place. And quite frankly, there’s just a lot of concern out there, so I remain bullish on gold.

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