Gold Technical Analysis
The gold market gapped higher to kick off the trading session on Monday as it looks like we are going to remain pretty bullish at this juncture. I think ultimately, you’ve got a situation where traders are going to continue to see this as a market that will attract a certain amount of inflows. Quite frankly, this market has, of course, been very bullish for a couple of years now, and we have now just hit a new high, and I just don’t think that is something that you can sell into. The 3,650 level will continue to be important from everything I see. And ultimately, this is a market that given enough time, it should see plenty of value hunters on each and every dip.
This breakout of course is a big deal. And I think eventually we could go looking at the $3,800 level, which is basically the bottom of the ascending triangle pattern that we’ve been escaping from and now putting in the rear view mirror. Short-term pullbacks will get bought into, I think $3,800 probably gets hit pretty quickly. And for that matter, I think we probably go higher than that. The shrinking of the US dollar helps gold, but we also have to keep in mind that gold markets are moving on a multitude of reasons. It’s not just the US dollar.
Source: Gold Price Outlook – Gold Continues to Look Strong
