Gold Weekly Price Outlook – Gold Has Another Strong Week

Gold Markets Weekly Technical Analysis

The gold market has been positive again during the week as it looks like we are going to continue to be very noisy. But I think you’ve got a situation here where now that we have escaped the previous ascending triangle, we can make the true move that the market’s been waiting for. Based on the measured move of the ascending triangle, traders will be looking for a move to the $3,800 level. Short-term pullbacks open up the possibility of a retest of the triangle near the $3,500 level, which should be interesting.

And at that point, I think you would have a lot of market memory that would come into the picture trying to push things to the upside. Ultimately, this is a market where pullbacks continue to offer value, as the measured move of $3,800 above offers a nice target. It’ll be interesting to see if we can blow through that target, but there’s really nothing out there that suggests gold is suddenly going to be weak in this environment.

So, with a Federal Reserve likely to cut interest rates next week and of course central banks around the world on hold or cutting, it does make sense that gold continues to rally quite nicely. Regardless, no matter what happens, I just don’t see a situation where I’m looking to short gold as it is far too strong at the moment. I think we will go to at least the $3,800 level eventually, possibly even $4,000 if momentum really starts to pick up.

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