Gold Weekly Price Forecast – Gold Markets Give Up Early Gains for The Week
Gold Price Predictions Video for 05.06.23
Gold Weekly Technical Analysis
Gold markets have shown signs of hesitation during the trading week after initially rallying toward the $2000 level. By doing so, we have formed a bit of an inverted hammer, just as we did during the previous week. With that being said, it suggests that the $2000 level could be an area that a lot of people pay close attention to. If we can break above the $2000 level, then it’s likely that we could go looking to the $2050 level after that.
Alternatively, the market breaking down below the $1950 level opens up the possibility of a rather significant selloff, perhaps down to the 61.8% Fibonacci level, and then even followed by the $1900 level. This of course would more likely than not see strength in the US dollar, as the negative correlation between the greenback and gold seems to have returned again.
When you look at the chart, it’s obvious that we are potentially forming a bit of a topping pattern, so that is something worth paying close attention to. Because of this, I think if we do break down below the $1950 level, it could be the beginning of something rather big. When you look at the longer-term charts, the $2100 level will be crucial to pay close attention to, because it was a major top multiple times in the past. If we were to break above there, then it’s likely that the market goes much higher, perhaps kicking up more or less a “buy-and-hold” type of scenario.
All things being equal, I would anticipate a lot of choppy behavior, but I am paying very close attention to the $1950 level, as it could be a sign that it’s time to get out of this massive bullish run.
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