Advertisement
Advertisement

Gold Weekly Price Forecast – Gold Markets Continue Consolidation

By:
Christopher Lewis
Published: May 8, 2020, 17:31 UTC

We will markets have gone back and forth during the course of the week, but at the end of the day it has shown a significant amount of support just below. As we consolidate and form a triangle, it certainly looks as if the market is trying to build up pressure.

Gold Weekly Price Forecast – Gold Markets Continue Consolidation

Gold markets went back and forth during the course of the week, as we see a lot of volatility in this market. We had recently seen a lot of gains, so the fact that the market needs to digest those gains should not be a huge surprise. At this point, the $1700 level offers support, extending down at least $20 from there. To the upside, the market was to break above the downtrend line, then it is likely that the market goes looking towards the $1800 level. If the market breaks above there, then it is likely that we will go looking towards the $2000 level over the longer term. I like the idea of buying pullbacks as it gives us an opportunity to pick up value in a market that is obviously a very bullish.

Gold Price Predictions Video 11.05.20

If we do break down below the triangle, is highly likely that the market then goes looking towards the $1650 level, and then possibly even the $1600 level after that. At the $1600 level that 50 week EMA would come into play, and that should attract a lot of attention as well. Nonetheless, I suspect that we are probably looking at more of a likelihood of the market breaking out to the upside before going much higher. Gold will continue to benefit from the central bank policy is around the world that continues to flood the market with cheap money. This of course drives up the demand for gold in general not to mention the massive dangers that are still out there.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement