Gold Weekly Price Analysis – Gold Bounces at the End of the Week

Gold Markets Weekly Technical Analysis

The gold market fell pretty hard during the early part of the week to test the $4,000 level, an area that obviously is a large, psychologically significant figure. And an area that previously has been important, we did bounce quite nicely from there, so it’ll be interesting to see how this plays out over time.

Interest rates in America started to pull back a bit during the week, and that might provide a little bit of a lift for gold, but let’s be honest here, it’s probably only a matter of time before some type of headline crosses the wire from the Middle East, which, of course, is one of the major issues that we’ve had for some time.

Technical Analysis and Support Levels

The $4,000 level should be a support level, and if we were to break down below there, it could open up the floodgates, but it looks like Friday is going to be a bit of an explosive move that might save the trend. If we break to the upside, clearing the $4,300 level, we could see the market go looking to the $4,600 level. This could happen, but we probably need help from the bond markets for that, as yields are high.

I have no interest whatsoever in trying to get too big in this market because I know the volatility is going to remain, but the reaction on Friday at least shows that the uptrend may end up being a bit of a stabilizing effect here that maybe saves the trend overall at this point.

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