Gold Weekly Price Outlook – Gold Has a Tough Week

Gold Technical Analysis

The Gold market has been a very negative market during the last several trading sessions and now it looks like we have formed a bearish engulfing candlestick. There is a trend line that coincides quite nicely with the $2,800 level. So we may have a week or two of general softness in the gold market, but when you look at the longer term chart, it does make a certain amount of sense considering just how noisy things have been.

This past week is a little bit difficult to get a read on though, because quite frankly, a lot of what could be going on is simple liquidation so that traders can cover other positions that have been absolutely crushed. If that’s the case, then I do think gold recovers rather quickly. I will be watching the $2,800 level because it was the recent swing high and on the daily chart, it shows the 50-day EMA as well and a lot of noise. So, I’d be very interested to see how gold behaves there.

This is an ugly candlestick, but again, you have to keep it in perspective. This is a market that’s basically gone straight up in the air since roughly September 2022. It’s been a massive performer. So ultimately, I think this is a dip that we’ll set up for a nice buying opportunity given enough time, but we have to wait to see when that is. Be patient, take your time. Don’t try to front run the move because quite frankly, we don’t know when the pullback ends.

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