Gold Weekly Price Forecast – Gold markets hit resistanceGold markets had an interesting week, slicing all the way up to the bottom part of the uptrend line that had been so important previously. By doing so, we now have fulfilled the test of resistance, and now we have a lot of questions to ask.
Gold markets initially rallied during the week and gained quite a bit in the way of momentum after the Federal Reserve has suggested that there will be no interest rate hikes between now and the end of the year. That doesn’t mean that we are ready to go straight up in the air, because we have obviously seemed a lot of selling pressure. Beyond that, we are also seeing US dollar strength as bonds have taken off to the upside.
Gold Technical Analysis Video 25.03.19
With this, we also have support underneath the $1300 level, so I think we are going to see a bit of choppiness with a slightly upward bias. After all, central banks around the world are buying gold, and most of them are very loose with their monetary policy. If that’s going to be the case that eventually gold will get a bit, even if it isn’t in the US dollar. That will have a bit of a knock on effect over here, as gold rallies against the Euro, Pound, Yen, and many other currencies.
You can also make a slight argument for a bullish flag, but we would need to break above the $1325 level rather decisively to get people to get excited. If that’s the case, we could be looking at a move to roughly $1400, perhaps even $1425 level. I think the only thing that you can count on is quite a bit of volatility and it’s probably going to be easier to trade this market from a short-term perspective than anything else.
Please let us know what you think in the comments below