Gold Weekly Price Outlook – Gold Continues to See Upward Pressure but Shows Exhaustion

Gold Markets Weekly Technical Analysis

The gold market initially rallied during the week showing signs of strength, but really at this point in time it looks as if it is going to give back some of the gains and I think this is a good thing. Quite frankly, this is a market that is overstretched and although I remain very bullish on gold from a fundamental standpoint, the momentum is going to continue to be an issue here because markets can only go in one direction for so long.

That being said, there are a lot of geopolitical issues out there that will drive gold higher. But furthermore, we also have the interest rate situation going on around the world as central banks are cutting rates. That tends to drive gold higher as well.

Furthermore, we also have central banks in places like Indonesia, India, China, and Russia, all buying gold. So that puts a little bit of a boost into it. Short-term pull banks at this point in time, I think continue to offer buying opportunities. Think also the market is likely to continue to see plenty of buyers at the $2,600 level, assuming we even dropped that far.

If we break above the top of the candlestick for the week, that would obviously be very bullish. And it is probably worth noting that previously we have formed a bullish flag on the daily chart and the measured move is anticipated to be to the $2,800 level. I believe the gold will go looking to the $3,000 level eventually, but it won’t get there in a straight line. So, I look at and quite frankly welcome any pullback as an opportunity.

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