Gold Price Outlook – Gold Rallies After Israeli Airstrike

Gold Technical Analysis

The gold markets have rallied hard overnight as Israel attacked Iran. And now, it looks as if we will continue to do everything we can to get to the crucial $3,500 level. The $3,500 level was the most recent all-time high and has been a major barrier for some time. Breaking above there opens up the possibility of a much bigger move. But right now, we have to be very cognizant of the fact that there is a lot of work to get above that region.

Short-term pullbacks are very likely at this point in time, but those short-term pullbacks offer buying opportunities, especially as the last couple of days are a little bit exhausting. It’s almost like the market is swimming upstream if you look at the wicks at the top of the candles. Nonetheless, this is a situation that even if we do break down, I see plenty of support.

This is true at the $3,300 level, the 50 day EMA and the $3,200 level. I’ve been looking at this through the prism of consolidation, perhaps working off froth between $3,200 on the bottom and $3,500 on the top. And I don’t know if it’s changed much. I think we are in a situation where we are just trying to figure out whether or not we have a catalyst to go higher. Overnight, we may have gotten one. We’ll just have to wait and see whether this is what makes the difference over the longer term.

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