Gold Weekly Price Outlook – Gold Gives Back Gains for the Week

Gold Markets Weekly Technical Analysis

The gold market initially tried to rally during the course of the week, and we shot all the way up to $3,500. However, we have since seen the gold market fall from there pretty precipitously. And now it looks like we are trying to form some type of shooting star. This would make a certain amount of sense because quite frankly, the market has shot straight up into the stratosphere and sooner or later it has to find gravity and people will try to do what they can to take profit before the market falls too far.

I think a short-term pullback does make a lot of sense. And even with the shooting star, it’s not exactly like I want to get short of gold. It’s just that I think we may get better pricing soon. This does make sense because of the overbought condition of the market and the fact that we are starting to see some overtures of potential tariff trade talks progressing.

And also, you have to keep in mind that there is a certain amount of psychology involved when you hear things like the US dollar isn’t going to be the world’s reserve currency anymore. You generally are getting to the end of that type of move. The louder that noise gets, the more likely it is you see a reversal.

Now that doesn’t mean that gold has to fall and go on a negative trend, but what it does mean is that the trade has gotten extraordinarily crowded. And with that being the case, I think you’ve got a situation where we could drop to the $3,200 level, a potential buying opportunity, and then again down to the $3,000 level, I think you see a lot of buyers being interested there as well.

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