Gold Weekly Price Forecast – Gold Markets Have Rough WeekGold markets pulled back significantly during the week as the $1600 level continues to be major resistance. That being said, the resiliency should be noted.
Gold markets have fallen during the week, taking a bit of profit as we got close to the $1600 level. Furthermore, part of the reaction from gold not only with from a structural standpoint but the fact that the Chinese added massive amounts of liquidity to the markets, perhaps pushing back some of the fears. That being said though, the markets should continue to see a lot of value hunters underneath though, and I do like the idea of buying pullbacks as it offers plenty of that value. The $1500 level should offer significant support, as the 50 week EMA is starting to race towards that level which has seen buying anyway.
Gold Outlook Video 10.02.20
Keep in mind that the coronavirus fears and the global slowdown continues to be a major issue, so that should drive gold higher overall. Beyond that, central banks around the world continue to keep interest rates extraordinarily low, and that typically does favors for the gold market. This is not only a Federal Reserve situation, but it is also the European Central Bank and beyond. Ultimately, I like buying dips and I like building a position. If the market breaks above the $1600 level it should go looking towards $1800 based upon my longer-term analysis. We had recently broken out of a flat, but now the $1600 level has offered a significant amount of resistance, and it is going to take a significant amount of momentum to finally break through it. Once it does though, it should be a rather rapid move and let’s face it: that headline that since the market much higher will probably come out of Asia at this point.
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