Gold Weekly Price Forecast – Gold Continues to Grind Away

Gold Markets Weekly Technical Analysis

The week for gold has been all over the place, and it does make a certain amount of sense that we continue to see uncertainty, as there are a lot of tensions in the Middle East and of course, the interest rate situation in the United States is most certainly a major driver as well. I think this is a scenario where you have to look at this through the prism of perhaps safety. But also, I think the biggest thing that you have to pay attention to is that we are overbought.

We are well over the 70 levels in the RSI indicator on the weekly chart and the previous week’s one, the Shooting Star. So, I think we’re probably getting close to either a pullback or maybe several candles in a row where we stay, in a somewhat tight range. Either way, this is a market that I think you’re looking for value and you’re not going to find it chasing all the way up here.

Gold, I think, is a longer term winner. And I do think it probably goes looking into the $2,500 level, but I would not be surprised at all to see a pullback to the $2,200 level. In the meantime, I think at this point we are just far too stretched either way. I don’t want to short the market, but I might be on the sideways for a minute here just looking for short term dips to start to build up a position. This is a market that I still think has some room to run at this point.

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