Gold Weekly Price Forecast – Gold Markets Form Bearish Weekly Candle

Christopher Lewis
Published: Oct 23, 2020, 18:50 UTC

Gold markets initially tried to rally during the week but gave back the gains to form a bit of a shooting star. We are dancing around the $1900 level.


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Gold markets initially tried to rally during the course of the week, reaching towards the $1940 level before pulling back to form a shooting star. The shooting star of course is a negative candlestick, and it suggests that we could drift lower. With that being the case, I think that we could break down towards the $1850 level longer-term. Underneath there, then we are going to go looking towards $1800 level which of course is a large, round, psychologically significant figure that will have a major influence on where we go next. That is an area we broke out of previously, and by the time we get down there it is likely that we will see the 50 week EMA come into play.

Gold Price Predictions Video 26.10.20

Looking at this chart, if we break above the top of the weekly candlestick that would be a very bullish sign but quite frankly, I will prefer to find more value underneath in order to play a longer-term position. At this point, I have no interest whatsoever in trying to get short as although the US dollar may strengthen, central banks around the world will continue to flood the markets with liquidity, and that could drive gold higher at the same time as the greenback.

All things being equal, there could be a bit of a “safety trade” formed again as well, so there are multiple reasons to think that perhaps gold could continue to go higher over the longer term. At this point, your job is to simply look for value underneath to take advantage of. I think we still have a couple of quiet weeks heading into the election.

For a look at all of today’s economic events, check out our economic calendar.

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.

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