Gold Weekly Price Outlook – Gold Falls For The Week

Gold Markets Weekly Technical Analysis

Gold markets plunged to kick off the week as the US dollar has been extraordinarily strong. That being said, Thursday and Friday both look like they are trying to stabilize the market, and we are in an uptrend after all. So, I think we have the potential for a turnaround but right now, I think the best thing the market can do is probably digest some of these gains over the last several months, perhaps try to build a little bit of confidence for buyers to step back into this market through that process. The $2,500 level underneath will be a significant support level from a psychological standpoint, and of course, the fact that there will probably be a lot of options traded in that general vicinity.

If the market were to turn around and break above the $2,600 level, then it’s likely that we could go look into the $2,800 level above, which was the barrier that stopped the market. That being said, it really wasn’t $2,800, that was the big factor. It was the fact that the US dollar suddenly took off, especially as the election came and went.

Ultimately, though, governments around the world will continue to spin the way they always have and central banks around the world are collecting gold, so there is a little bit of a built-in bid to the market. The interest rate situation will remain to be seen, but central banks are cutting rates. The problem is the bond markets aren’t paying attention to them. So, keep an eye on yields and what they could end up doing to the idea of owning precious metals.

For a look at all of today’s economic events, check out our economic calendar.