Gold Weekly Price Analysis – Gold Continues to See Buyers

Gold Markets Weekly Technical Analysis

The gold market has initially pulled back a bit during the trading session on Monday, but then spent the rest of the week rallying, and now it looks like we are trying to make a move towards the $5000 level. The gold market, of course, is moving in reaction to interest rates, which are moving in reaction to headlines out of the Middle East.

However, on Friday, we heard statements coming out of Iran that the Iranians have declared the Strait of Hormuz open during the cease-fire, so this has rates just plunging in the United States, which, of course, helped gold.

Market Support and Future Outlook

I do think that this is a very positive market if all things stay the same and, in this environment, we could see a move towards $5000. A pullback at this point you still have to favor the $4600 level as a potential floor in the market. This area has a lot of market memory, so I suspect that a lot of the trading world would be watching it closely.

Ultimately, I do think that every time this market pulls back it ends up being a buying opportunity, especially if we are in fact going to start seeing peace in the Middle East again. That would be a major driver of higher gold prices because it will bring those interest rates down and we can continue the trend that we had been in previously, which was so strong. I don’t expect the same kind of momentum, but just the general direction to continue.