Gold Weekly Price Forecast – Gold Markets Bounce From Crucial Support

Gold Weekly Technical Analysis

Gold markets have had a wild ride this week as the ECB shocked the markets with a 50 basis point rate hike. This had a negative influence on the US dollar and therefore had the gold markets rallying. At this point, we also have to pay close attention to the fact that the $1680 level held, which is also where the 200 Week EMA sits. Because of this, I think you need to be very cautious about trying to short this market in the meantime. Whether or not we can continue to go higher is a completely different question though, but I think in the meantime we are more prone to a bit of a bounce than anything else.

Keep in mind that this coming week features the Federal Reserve interest rate decision, but perhaps more importantly there will be a statement that people will be parsing. That statement could throw gold markets into disarray, so although I do believe that we are in the midst of a nice bounce, it’ll be interesting to see how we behave after that on the 27^th. This next week might be a bit of short-term recovery, followed by a messy amount of volatility.

Looking at this chart, you could also make a huge argument for the idea of the $1800 level being a major resistance barrier. At that point, the market will have to decide whether or not it can truly continue higher. On the other hand, if we turn around and break down below the low of this past week, that opens up the trap door to significant selling in the gold market, and we could drop quite drastically.

Gold Price Predictions Video for the Week of 25.07.22

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