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Gold Weekly Price Analysis – Gold Gives Back Much of the Gains for the Week
Published: Jan 30, 2026, 16:40 GMT+00:00
Gold has a wild week as traders are starting to look at the market through the prism of being overbought. The chatter alone on social media was probably a strong hint we were overdone.
Gold Markets Weekly Technical Analysis
The gold market initially shot higher during the week, breaking above the 5,600 level at one point, but on Friday, we saw the market roll over quite viciously and, in fact, at one point even broke back below the 5,000 level.
The resulting candlestick is going to be interesting to watch. We will just have to see how this plays out. I think this could kick off a little bit of a correction, and quite frankly, I think that would also be very helpful. The market, of course, has been out of control for a while, and with that being the case, a deep correction would make a certain amount of sense, perhaps opening up the opportunity for others to join the rally.
Technical Outlook
The 5,000 level is important, so we want to stay above there on the weekly close. If we do not, then it is likely that we will see a deeper correction, perhaps even down to the 4,800 level. All things being equal, I do think gold is overdone, so this was probably a long time coming, quite frankly.
However, that does not mean I want to get short of this market. It is far too bullish to try to short, and I think, given enough time, we probably go even higher, but you cannot go straight up in the air forever. Sooner or later, gravity has its say, and that might be part of what we are seeing here. I expect massive volatility in what should remain an uptrend for the longer-term outlook.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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