Gold Weekly Price Forecast – Gold markets form supportive weekly candle stick

Gold markets initially fell during the week but found enough support near the $1500 level to turn things around of form a bit of a hammer. We are at extended levels though, so the question then becomes whether or not we can continue this move.
Christopher Lewis
Gold weekly chart, August 26, 2019

Gold markets continue to see quite a bit of buying pressure, but at this point it looks like we are starting to get a bit extended. Quite frankly, this market desperately need some type of pullback, and unfortunately we did not get a significant one yet. It is because of this I would not be surprised to see the market roll back towards the $1500 level before we can go much higher. Having said that, if we did break above the $1550 level, then it’s possible that we could go to the $1600 level.

Gold Price Video 26.08.19

Regardless, and the fact that it’s so obvious that we are overbought, I don’t have any interest in trying to sell this market. I think we are simply looking at gold as a value proposition, and ultimately the gold market should continue to go much higher of the longer-term due to loosening monetary policy coming out of central banks around the world. This is not only a phenomenon against the US dollar, but against just about any other currency that you can think of.

I believe that the $1450 level underneath is the top of a significant ascending triangle that should offer plenty of support and essentially a “floor” in the market. Ultimately, I would love to buy gold down there, but I don’t know if we get that opportunity. Either way, we need to find pullbacks on short-term charts at the very least in order to take advantage of the trend. Regardless, I would not jump in with both feet, because we have so much in the way of overextension here.

Please let us know what you think in the comments below

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