Gold Weekly Price Forecast – Gold Continues to Look Bullish in Consolidation

Gold Markets Weekly Technical Analysis

The gold market fell rather hard during the course of the week but has also turned around to show signs of life. At this point, I think we are probably more likely than not to see some consolidation, which would be a very positive turn of events in this market, as nothing can go straight up in the air forever.

This consolidation should end up being the typical type of sideways noise and chop that you see in the gold market. After all, we shot straight up in the air and quite frankly, we need to find some type of value in order to get long again and bring in fresh buyers. There are plenty of geopolitical concerns out there that could move the market, so I do think that the downside is probably somewhat limited, but that doesn’t mean that it won’t be volatile from time to time.

At this point, it looks like the $2,300 region is going to be an area of potential support. And if we stay above there, then I think we just go sideways. If we break down below the $2,300 level, then it opens up the possibility of a move down to the $2,200 level, an area that previously had been resistant. Either way, I do think eventually gold turns everything around and ends up rallying to reach the $2,500 level.

I don’t necessarily think that it’s going to be easy, and it may take a little bit of time, but as the war in the Middle East hasn’t expanded greatly, that has cooled off some of the fervor when it comes to buying gold.

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