Gold Weekly Price Analysis – Gold Continues to See Buyers on Dips

Gold Weekly Technical Analysis

The gold market initially fell during the trading week but turned around to show signs of life again. By doing so, it looks very much like a market that is trying to recapture the crucial $4,600 level, an area that I think will continue to be very important for gold traders.

Ultimately, this is a market that will move on interest rates, and of course, interest rates are all over the place right now as traders are trying to sort out what’s going on in the Middle East. The Middle East, of course, is a bit of a mess due to the situation between the Iranians and the Americans and what they may or may not agree on.

With that being said, I am in theory bullish longer term, but I also recognize that we have a lot of noise ahead of ourselves, and ultimately, I think you have to be very cautious with your position size. I think you also have to realize that it is probably only a matter of time before we see a wicked swing.

Market Signals and Value Assessment

The fact that we are forming a hammer with all of the chaos going on does suggest that perhaps people are starting to look at gold as offering value, and that would be something that I’d be very interested in. If we break down below the lows of the week, then we could go challenging the $4,200 level, but right now, it looks like the buyers are willing to come in and fight to keep the market up.

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