Gold Markets Bounce to Show Signs of Support During the Week

Gold Weekly Technical Analysis

Gold markets have initially fallen this week, but have also found enough support near the $1850 level to turn around and show signs of life. Because of this, it looks like the market is trying to reenter that consolidation area that we had previously been in, and it is also worth noting that the weekly candlestick is a hammer, which is also the same shape that we had seen the previous week. This typically means that a bounce is more likely than not to recover, and a break above the $1905 level could confirm this.

On the other hand, if we were to break down below the bottom of the hammer, then it is likely that we go looking to the $1800 level after that. The $1800 level is a large, round, psychologically significant figure, and an area where a lot of bullish pressure has been seen previously. Because of this, I think it is more likely than not that it would hold as support. That being said, I think it is probably only a matter of time before we have to make a bigger decision, so I do think that it is only a matter of time before we have to make a bigger move.

At this point, I favor the upside but I also have to keep an open mind as we obviously have a lot of noise in the various markets, and therefore gold will continue to be volatile going forward. With this being the case, keep your position size reasonable and recognize that caution is the better part of valor at this point.

Gold Price Predictions Video 09.05.22

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