The Gold market has been consolidating over the last two months after a powerful run on the upside. As the chart illustrates, previous pullbacks were bought when GLD (Gold ETF) corrected down to its 50-day moving average, and the RSI indicator pulled down to about the 50 level.
While the long-term trend remains bullish, the short-term outlook is contingent upon developments in the Middle East. If the tensions and military operations continue to escalate, Gold will be bought, and prices will head to new all-time highs. However, if the situation calms down, GLD may break down and have a larger correction. However, even if it does happen, it will likely represent a buying opportunity within a week or two.
