Gold Weekly Price Forecast – Gold Markets Running Into Resistance

Gold Weekly Technical Analysis

Gold markets have spent most of the week trying to rally, but it looks as if the $1800 level continues offer a massive amount of resistance. In fact, it’s worth noting that there is a lot of supply at the $1815 level, so we need to get above all of that in order to become truly bullish. The fact that we are attempting to form a bit of a shooting star does suggest that were ready for a bit of a pullback, which does make sense considering how bullish we had been recently.

This does not necessarily mean the gold is going to break down, but with the Federal Reserve likely to continue tightening monetary policy, that does work against gold, because interest rates will continue to climb. The jobs number on Friday came out at more than half a million jobs added, so it does make quite a bit of sense that rates rise, as the Federal Reserve cannot make the argument of inflation slowing. As long as they continue to do whatever they can to fight inflation, that’s going to work against gold because interest rates are going to be higher, meaning that you can earn a return on paper instead of storing gold.

The second derivative is that the US dollar strengthens, which of course means that it will take less of those US dollars to buy gold. While I’m not necessarily calling for some type of meltdown, I do think that a pullback makes quite a bit of sense from this point, perhaps down to the $1750 level where we previously had seen a bit of resistance.

Gold Price Predictions Video for the Week of 08.08.22

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