Gold Weekly Price Outlook – Gold Continues to Work Off Froth

Gold Markets Weekly Technical Analysis

The gold market has fallen a bit during the course of the trading week, but it looks like we are in fact going to somewhat stabilize and I am recording this after the jobs number and the jobs number in the United States came out a little bit stronger than anticipated, although nothing major. So, because of this, I think you’ve got a scenario where we are just simply going to bounce around in this area. It’s worth noting that there is an uptrend line that we are approaching, and that uptrend line should offer plenty of support as well. If we can break above the $2,725 region, then it opens up a move to the $2,800 level.

Breaking below the uptrend line then opens up the possibility of a move down to the $2,500 level, followed by the $2,400 level where we see the 50-week EMA. All things being equal, this is a market that I think continues to see a lot of volatility and choppiness, but that does make a certain amount of sense considering how much is going on in the world. After all, we still have a hot war in Ukraine that does have a lot of people nervous, and rightfully so.

Even if we pull back from here, there will be people out there looking to pick up cheap ounces of gold in what has been a very reliable and strong uptrend. Profligate spending out there around the world I think continues to see a lot of interest in gold due to that. All things being equal though, this is a market that I think will remain volatile.

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