Gold Weekly Price Forecast – Gold Markets Recover Slightly

Gold markets rallied a bit during the course of the week, but quite frankly we still have further to go if we wish to take losses back out. The market could be looked upon through the prism of retesting a symmetrical triangle before continuing lower, but at this point that does not necessarily mean that I would be a seller. Quite frankly, I think that the market is likely to go back towards the $1850 level, which is a minor support level. I also believe that we could break down through that area as it is as I said, minor.

Gold Price Predictions Video 05.10.20

I am much more interested in buying gold closer to the $1800 level, an area that we had broken out from. There is a lot of conflict at that area not only from the fact that it is a large, round, psychologically significant figure, but we also have the 50 week EMA reaching towards that level. Beyond that, it has never been retested, something that markets like to do.

With all that being the case I think it is only a matter of time before value hunters come in and push this market higher, and I plan on being one of them. The negative correlation with the US dollar still persists, but if the economy gets as soft as I think it might, both assets, the US dollar and gold, will eventually rise. It takes a while for that correlation to break and reverse. This has happened multiple times in the past when the dollar and gold both rose in a bit of a safety bid.

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