Gold Weekly Price Analysis – Gold Sees Trouble for the Week

Gold Markets Weekly Technical Analysis

The gold market initially tried to rally during the week, but it gave back those gains with the $5,500 level above looming large as a ceiling. The $5,000 level has offered a little bit of support. That makes some sense; it is a large, round, psychologically significant figure.

But now I think we are going to have to deal with the idea that maybe we need to find some type of range. Right now, I would anticipate that range probably is bordered by $4,600 on the bottom and possibly $5,500 at the top. We will just have to wait and see. This is an ugly candlestick, and it is an overextended market, so it would not completely surprise me to see gold pull back from here.

Geopolitical Headwinds and the US Dollar

Quite frankly, I would like to buy that dip, especially if it gets nearly $4,600. We will just have to wait and see. Pay attention to the US dollar; it has been strengthening and I think you have got a situation where that US dollar strength probably wears on gold for a while.

Ultimately, they both will rise for the same reasons if we are in fact in a major risk-off type of environment going forward due to geopolitical headlines coming out of the Middle East and a whole host of other problems. With this, I am optimistic long term, but also think that we have an issue in the short term as the troubles in the Middle East and a potentially stubbornly tight Fed, gold could have a hiccup.

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