Gold Weekly Price Forecast – Gold Continues to See Buyers Overall

Gold Markets Weekly Technical Analysis

The gold market initially fell during the course of the week but has turned around to show signs of extreme strength as it looks like we are trying to do everything we can to break out to the upside. Ultimately, this is a market that if we can break above the $2,530 level, then I think it becomes more of a buy and hold scenario yet again.

Regardless, I don’t have any interest in shorting the gold market because there are far too many reasons for gold to go higher. The first one, of course, is the fact that central banks around the world continue to buy gold. So, there’s a little bit of an underlying bid anyway. Furthermore, we also have to keep in mind that interest rates dropping could have a certain effect on gold as it makes owning gold a little bit more attractive in the face of less return on paper, and therefore paying for storage of gold is okay.

After that, we also have to keep in mind that geopolitics dictates that there are a lot of concerns right now when it comes to the overall global order, and that could make gold attractive as a way to protect your portfolio. Ultimately, at the end of the day, we’re in an uptrend and that hasn’t changed, so there’s no need to fight that. And I do think that we’ve got a situation where if gold does drop like we’ve seen earlier in the week, the market turns around and shows that there is plenty of interest. Ultimately, I do think we will go higher, probably much higher.

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