Gold Weekly Price Forecast – Gold Markets Pulled Back From Familiar Level

Gold Weekly Technical Analysis

Gold initially tried to rally during the week but found enough resistance near the $1680 level to pull back yet again. Remember, the US dollar is a major influence on what happens with gold, and as it rises, typically gold will fall. If we break down below the bottom of the candlestick for the week, then it’s possible that we could go looking toward the $1620 level, where we have formed a little bit of a double bottom. If we were to break down below there, then it’s likely that we go much lower.

I don’t expect that to be the case in the short term, but if we get the Federal Reserve sounding more hawkish than anticipated on Wednesday, that could be the catalyst to send this thing scream into the downside. Obviously, it works in both directions, so if we were to see the Federal Reserve suddenly sound obvious, that could send gold much higher.

I think the only thing you can count on is a lot of volatility but given enough time we will have to make some type of longer-term decision. In the short term, looks like we are comfortable going back and forth and essentially doing nothing. That being said, it’s obvious that we are much more comfortable going lower than we are higher as things stand, so most traders will be looking at this through the prism of shorter-term charts that they can take advantage of value in the US dollar and short the gold market.

That being said, a little bit of patience probably goes a long way in this scenario, so keep in mind that we have a lot out there that can move the market in both directions and therefore you will need to be cautious about your position sizing more than anything else.

Gold Price Predictions Video for the Week of 31.10.22

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