Gold Weekly Price Outlook – Gold Continues to Bounce Around

Gold Markets Weekly Technical Analysis

The gold market has rallied a bit during the course of the week as the $2600 level continues to offer significant support. This does make a certain amount of sense, considering that we’re just hanging around the same area we’ve been in during the holiday season. And we still haven’t had liquidity return. I suspect that gold will be watching the jobs number on Friday of this upcoming week rather closely to get a grip on what might be happening with the Federal Reserve.

Short-term pullbacks I still believe are offering value, but I think the market has entered more or less a neutral phase for the time being, which does make a certain amount of sense, considering just how much we had gained over the course of the year 2024. A little bit of a breather is probably warranted, but at this point I have no interest in shorting the market. Don’t get me wrong, I’m not extraordinarily bullish at the moment either, but I do recognize that when the market pulls back, it is more likely than not going to be offering value. I still believe that we could very well see gold go looking towards the $3,000 level.

It’s just that it might take some time to get there because interest rates in America have been stubbornly high. Other countries though are cutting interest rates and that will have a knock-on effect over here as gold should continue to look really strong against other currencies such as the Euro or the Australian dollar, for example. Regardless, this is a market that I think has a hard floor and it’s somewhere right around the $2,500 level. So, I’m looking for back and forth sideways action.

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