Gold Weekly Price Outlook – Gold Likely to Continue to See Upward Action

Gold Weekly Technical Analysis

The gold market has fallen pretty significantly during the course of the week, but you can see that we have turned around to show signs of life again. By doing so, it tells me that there is at least a certain amount of support underneath that people will continue to express anytime gold drops. We have a major trend line underneath and of course we have the $2,600 level, which so far has been intriguing from a bullish stance.

The geopolitics around the world continue to favor gold, so I do think there’s going to be a bit of that at play as well. And now the question is, do people want to jump into the gold market or do we digest a while before going higher? This isn’t to say that gold can’t fall apart, of course it can’t, but right now it certainly looks like it favors the upside.

It’s really not until we break down below the $2,500 level that I would be concerned about gold and at that point in time, we could drop down to the $2,300 level. That being said, I think it’s much more likely that we consolidate sideways for most of December and then go higher in the new year, or maybe go higher at the end of the year, breaking above the $2,800 ceiling.

If and when we do, that opens up a move to $3,000. I have no interest in shorting gold anytime soon. I think there are just far too many things out there trying to push it higher, not the least of which is geopolitics, but there are central banks out there buying it in large amounts as well. So that puts a little bit of a Perma bid into this market as things stand.

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