Gold Weekly Price Forecast – Gold Continues to See Buyers on Dips Overall

Gold Markets Weekly Technical Analysis

The gold market initially pulled back to the $2,600 level only to turn around and show signs of strength. By doing that, we ended up forming a little bit of a hammer and that does suggest that we are going to continue to go higher. All things being equal, it looks like every time we pull back, gold ends up finding buyers and value hunters. Remember, there are a host of reasons to think that perhaps gold should continue to strengthen, not the least of which would be central banks out there buying it hand over fist, but we also have geopolitical concerns that are going nowhere.

Furthermore, we have the Federal Reserve cutting rates. That obviously helps gold as well. So, I think you’ve got a situation where gold will continue to fly. On dips, I’m more than willing to step in and add to my position. In this past week, although a little rocky in the beginning, did more or less solidified the idea that there is still plenty of demand.

We may have to go sideways for a while, and I fully accept that, in order to work off some of the froth from the previous month or so, but ultimately there’s nothing on this chart that even remotely suggests that you should short the market or that gold’s going to turn around for a bigger move. Really at this point, I think you would probably have to break down below the $2400 level to even think that things are changing for something more significant.

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