Gold Weekly Price Forecast – Gold Markets Have Strong Week
Gold markets have rallied significantly during the course of the week, and especially on Friday as the Federal Reserve statement at Jackson Hole has come and gone, suggesting that perhaps although the Federal Reserve is likely to taper, the reality is that they will do so slowly, and very thoughtfully. In other words, there will be a sudden shock to the system and also the Federal Reserve is starting to talk about the possibility of inflation. While everybody else in the world knows it has existed, the fact that the central bank is starting to talk about that as well gives more credence to the idea of owning gold.
Gold Price Predictions Video 30.08.21
If we can break above the $1830 level, then it is likely that we could go higher, perhaps reaching towards the $1910 level. That is an area that is significant selling pressure, and therefore I think it makes a nice target, as well as barrier. Pay close attention to the US Dollar Index, as it tends to have a negative correlation to this market, and therefore it is likely that we would see gold go higher as the greenback continues to face pressure. Of course, the exact opposite can happen as well so make sure that you are paying close attention to both.
If we were to turn around a break down below that support level at the $1680 level, then I think it would be disastrous for gold, but it seems to me as if we are in the process of recovering, perhaps sending the market towards the $2000 level over the last several months. That being said, I think the one thing you can probably count on is choppiness but upward pressure.
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