Gold Weekly Price Forecast – Gold Rallies at the End of the Week

Gold Markets Weekly Technical Analysis

The gold market initially plunged for the week, perhaps in a bid to try to find value. After all, we have been extraordinarily overbought for a while. So that’s not necessarily out of the realm of normalcy, but we have since seen the market do everything it can to turn around and rally, and the jobs report on Friday really looked like it freaked some people out.

But now we have turned around to show signs of life again. And I think at this point, you’ve got a scenario where the market participants will continue to look at this through the prism of finding value on each and every dip. The geopolitical situation, of course, is driving gold much higher.

I mean, things are not necessarily doing any better in the Middle East by any stretch of the imagination. And then again, you have central banks around the world cutting rates. And beyond that, you have several central banks hoarding gold.

So, it all ties together for a reasonable assumption that we will continue to go higher over the longer term. All things being equal, I think this is a scenario where you look at the market as likely to go to $3,000 eventually, but sooner or later, we are going to have to work off some of this excess froth as people take profit, or quite frankly, people on the sidelines look at this and say, I can’t chase it. One of those two things will start to drive the market. But as things stand right now, there’s literally no chance of me trying to short the gold market.

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