Gold Weekly Price Outlook – Gold Continues to Look Stout

Gold Markets Weekly Technical Analysis

The gold market initially pulled back a bit during the week but has since launched pretty aggressively from the $3,000 level, an area that of course is a large round psychologically significant figure. In fact, as I record this video, we are getting fairly close to that target of $3,300 as spelled out by the bullish flag that we had formed previously. In this environment, I think you will continue to see a lot of traders look to gold for safety, mainly due to the fact that there’s so much uncertainty out there. It’s actually pretty bad.

So, with that being said, I am very bullish on gold, but I also recognize that we also need to keep in mind that we are extended. So, the occasional pullback I think makes sense, but those occasional pullbacks for me at least are going to end up being selling opportunities. And therefore, I look at the $3,000 level as a bit of a floor in the market at the moment.

All things being equal, this is a market that will remain very volatile, but I still think the upside is the only way you can trade this market, especially if the US dollar continues to shrink like it has been doing. But I also recognize that we have a scenario where, eventually, something has to give. Things can’t go in one direction forever. So you don’t want to go all in trying to chase the position at this point. If you’re already in this position, then you’re very happy, obviously. But right now, I think you have a situation where traders are going to continue to look at this through the prism of trying to find value.

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