Gold Weekly Price Analysis – Gold Continues to Look to Historic Levels

Gold Markets Weekly Technical Analysis

The gold markets have shot straight up in the air again over the course of the last five days. On Friday, we find ourselves just shy of the $5,000 level. While being at $5,000 an ounce itself isn’t overly surprising to me, what is surprising is how quickly we got here.

That being said, I do think there’s a little bit of psychology at play here as we approach this large round figure, and therefore, I think you have to keep in mind that this is going to be a somewhat noisy and potentially difficult area to overcome. That doesn’t mean that we won’t just shoot right through there; that’s possible as well. Generally speaking, these big numbers cause markets to pause a bit.

Short-term Pullbacks

Short-term pullbacks, I think are likely, and I do think that they end up being opportunities in this market, with the $4,800 level and the $4,600 level both offering support. As long as we can stay above $4,600, I don’t think that correction gets very deep.

Even if it did, we’d be talking about at least $4,000 being, where you would have to break through to the downside to worry about the overall trend, and even then, you’re still technically in an uptrend. This has been so strong.

I do think you have to be cautious when buying gold all the way up here. Therefore, I prefer to look for short-term pullbacks to take advantage of even in a longer-term situation like this. This is a market that has clearly decided which direction it is looking to get to, and therefore, you cannot fight the momentum.

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