Gold Weekly Price Forecast – Gold Markets Form Signs of ExhaustionGold markets have rallied significantly during the course of the week, reaching towards the $2100 level before pulling back a bit.
Gold markets rallied during the bulk of the week but found it too much resistance in the form of the 2100 level on Friday to continue going higher. By pulling back the way we have, it shows signs of exhaustion that clearly is a bit overdue as we have gone parabolic. Ultimately, I do think that a significant pullback of becoming, and it could be as deep as $1800. At the very least we need to see the gold market pull back to $2000, as chasing the trade up here is a great way to get hurt.
Gold Price Predictions Video 10.08.20
The US dollar has been getting hammered for quite some time, but that can only go in one direction for so long. This has been a major driver of the gold markets going higher so as the US dollar recovers, the gold market will pull back. However, there has been a cyclical and structural change, and therefore it is worth paying attention to. With that being the case, it is likely that the market will move in a directly negative correlation to the US dollar, and therefore I believe that is what you should be paid attention to.
Longer-term, I believe that the gold market goes looking towards the $2500 level, perhaps even the $3000 level if things get truly hairy for the greenback and the fear of traders around the world. The continued issues around the world will elevate gold, just as the falling US dollar will be due to the Federal Reserve printing. I have no interest in shorting this market, even though I recognize that we could very well pull back significantly rather soon.
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