Gold Markets Find Plenty of Support Underneath During the Week

Gold Weekly Technical Analysis

Gold markets have fallen rather hard during the trading week to break down below the $1900 level. However, we have turned around to show signs of life again in closed near the $1907 level. This is an area that I think will continue to be important, so we need to keep an eye on what happens in this general vicinity. The hammer that formed for the week is of course something worth paying attention to, because it does look as if we could go back to the $1970 level.

If we were to turn around a break down below the hammer, then the market is likely to test the $1850 level. The $1850 level also features the 50 Week EMA, so it does suggest that we have plenty of support. At this point, the market has been a lot of back and forth more than anything else, so therefore I think it is worth paying attention to shorter-term charts as well, as it could give you a bit of a heads up as to where we are going to go.

It is obvious that the $2000 level has been significant resistance, and a break above there would change everything. It is also worth noting that we had recently seen a lot of selling pressure to form a massive “double top” over the last several years. If we can break above the shooting star from about six weeks ago, it is likely that we could go much further. I think at this point, we have plenty of noise more than anything else. Pay attention to bond yields, they have a negative correlation.

Gold Price Predictions Video 02.05.22

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