Gold Weekly Price Forecast – Gold Markets Recover Initial Losses for the Week

Gold Price Predictions Video for 27.03.23

Gold Weekly Technical Analysis

Gold markets have initially plunged during the trading week to test the $1940 region, only to turn around and show signs of life again. The resulting candlestick ends up being a bit of a hammer, which will be interesting to watch. This is because we are pressing up against a major resistance barrier in the form of just over $2000.

If we were to break above the top of the candlestick, it would be an extraordinarily bullish sign, and could send gold soaring. However, if we turn around and break down below the bottom of the candlestick, it’s very possible that we could turn around and start plunging. This would be a “hanging man candlestick”, which is a very bearish sign indeed. This is not to say that we are necessarily going to see this market collapse at that point, but we may have a somewhat deep correction.

Keep an eye on the US dollar, it will almost certainly have some influence, but don’t get too sold on the idea of “dollar up, gold down” nonsense. After all, the market has seen both gold and the United States dollar rally at the same time, so it does make certain amount of sense that we would see that in an environment where people are trying to protect wealth. You can make a significant argument that protecting wealth has been a major driver of this latest rally, so that is something to keep in mind.

Underneath, the 50-Week EMA sits at the $1826 level and is rising, so it’s very possible that could be a target for short-sellers if we do break down. On the other hand, if we turn around and rally quite drastically, the $2100 level would almost certainly be targeted given enough time.

For a look at all of today’s economic events, check out our economic calendar.