Gold Weekly Price Forecast – Gold markets form bullish candle stick for the week

Gold markets initially fell during the week, crashing into the trend line underneath. However, as the market has continued to show time and time again, there are plenty of buyers out there.
Christopher Lewis
Gold weekly chart, October 07, 2019

Gold markets broke down a bit during the trading week, reaching down towards the uptrend line that I have marked on the chart. This is an extension of the uptrend line from the ascending triangle below, and now the market has broken back above the $1500 level. That is obviously a very bullish sign as we formed a hammer, which is also another bullish sign. Ultimately, the market is very likely to continue going higher, reaching towards the $1560 level again. The market has been in and uptrend for quite some time, so this of course jibes well with the overall sentiment.

Gold Technical Analysis Video 07.10.19

To the downside, the $1450 level will of course be supportive, and therefore it’s likely that the market will continue to find buyers every time it dips, as gold is used as a safety outlet for traders when there are a lot of concerns and uncertainty when it comes to the global markets, and of course global economies. With central banks around the world cutting interest rates and adding quantitative easing, it suggests that gold should go higher based upon that as well.

All things being equal, it’s very likely that the market will continue to go higher over the longer-term, perhaps reaching as high as $1800, possibly even the $2000 level. Obviously that’s a long term call and will take quite some time to get there. If we were to break down below the $1450 level, that could send the market down to the $1400 level, where would meet the 50 week EMA.

Please let us know what you think in the comments below

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