Gold Weekly Price Forecast – Gold markets looking to find support underneath

Gold markets fell during most of the week but had an explosive move on Friday to turn things around and form a hammer, just above the psychologically important $1200 level. I think that the market may be starting to show the first signs of a reversal.
Christopher Lewis
Gold weekly chart, August 06, 2018

Gold markets fell significantly during the week, reaching down towards the $1200 level, an area that has been support more than once. By forming a hammer, it looks as if we are ready to turn around and try to rally a bit, perhaps reaching towards the $1250 level, and maybe even back towards the highs over the longer-term. However, pay attention to the US dollar and what it is doing. If it starts to fall in value, then I think gold could turn things around as it offers plenty of value.

If we do break down below the $1200 level, it would not surprise me at all to see this market goes looking towards the $1120 level, and then perhaps the $1000 level after that. That is an area where I would buy as much gold as a possibly could, because it should be such a longer-term buying opportunity based upon a break out years ago. That being the case, this will simply move counter to what the US dollar does, so pay attention to the FX markets if you are going to trade gold. I suspect that if there is a time where buyers should return, this is probably it. That isn’t to say that we are going to shoot straight up, but I certainly think that the buyers are willing to take a chance in this area based upon the candlestick that we just formed. I think that the selloff has been overdone to say the least, and this is a strong demand area.

Gold Price Predictions Video 06.08.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US