Gold Weekly Price Analysis – Gold Drifts Slightly Lower for the Week

Gold Weekly Technical Analysis

The gold market fell a bit during the trading week in what would be shorter trading. There was the Juneteenth holiday on Friday, so that of course came into the picture as well. But now, I’m watching the $4,000 level very closely. I think that’s an area that you need to be very cautious with. It should, at least in theory, be supported, but if it were to give way to selling pressure, the gold market could really roll over and continue to fall, perhaps down to the $3,500 level.

Technical Levels and Macro Drivers for Gold

A drop to the $4,000 level, at least in theory, should find buyers. But if we were to turn around and break above the $4,300 level, it’s likely that we could go looking to the $4,400 level, perhaps even the $4,600 level.

Ultimately, I think gold will continue to pay close attention to the interest rates in the United States, which, of course, is going to be driven by the headlines coming out of the Middle East and just overall strength or weakness of risk appetite in general. The more risk appetite we have, the better gold should do because the US dollar, at least, should, in theory, drop.

I’m still bullish on gold, and I do think that we’re getting fairly close to the recent pullback bottom, but I also recognize that things are going to be very noisy between now and a resolution. Sooner or later, we’ll have a very obvious move. Right now, expect choppiness. I do like the idea of buying dips. I don’t like shorting gold, at least not until we close below the $4,000 level, at least on the daily time frame.

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