Gold Weekly Price Outlook – Gold Falls Early in The Week but Recovers

Gold Markets Weekly Technical Analysis

The gold market fell during the course of the trading week, only to bounce again in the Thursday and Friday sessions. All things being equal, it looks to me like the $2,600 level underneath should be significant support. And as a result, it looks like the weekly candlestick should end up showing some type of hammer. All things being equal, this is a market that I think continues to be noisy, but we have sideways action just waiting to happen. After all, we had shot straight up in the air over the last couple of weeks.

But at this point in time, it looks like the market is trying to work off some of that excess froth. If we can break above the $2,800 level above, then I think it opens up a bigger move. At that point, I would anticipate gold looking to the $3,000 level before it’s all said and done. And in fact, you can make an argument that there is a measured move of $200 or so based on this current sideways action.

If we were to break down below the $2,600 level, then it’s possible that we could drop down to the $2,400 level after that. The 50-week EMA currently resides around there, so I do think there’s a certain amount of technical pressure there as well. All things being equal, gold looks strong, and I’ve got no interest whatsoever in trying to get short of this market as it looks like it’s going to continue to rally.

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