Gold Weekly Price Forecast – Gold markets roll over for the week

The Gold markets fell hard during the week, reaching down below the hammer from the previous week. The $1200 level underneath is somewhat supportive though, so I think at this point we would probably find buyers in that area but keep in mind that the US dollar will have its influence on this market.
Christopher Lewis
Gold weekly chart, November 12, 2018

Gold markets have broken down during the week, slicing through the bottom of the hammer from the previous week. The $1200 level underneath is rather supportive, and I think that the area is more of a support zone, so keep that in mind. When looking at precious metals, remember that the US dollar has been very strong and that of course weighs down both of the major precious metals markets, both gold and silver. Truthfully though, if you’re looking to short precious metals I think it probably better off doing it against silver, as it is sitting right on top of a major support level.

Gold Analysis Video 12.11.18

That being said, if we break down to a fresh, new low you could make an argument for a bearish flag in the gold market that targets much lower levels, and by my measurement we could be talking about somewhere close to $1000 an ounce. That’s an area that was massive in its resistance years ago, and I think will attract a lot of attention. Keep that in mind because quite frankly that would probably be an area where you could really find a lot of value. That of course is getting ahead of ourselves, and although I think that the market is probably going to continue to go a little lower, the real test will be whether we can break down to a fresh, new low. If we do, then we start falling rather drastically. The alternate scenario of course is that we turn around and break above the $1250 level. That of course would be very bullish.

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