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Gold Weekly Price Forecast – Gold markets show signs of exhaustion

By:
Christopher Lewis
Updated: Aug 16, 2019, 16:55 UTC

Gold markets rallied again during the week, but quite frankly have underperformed later in the week. At this point, there is a bit of a shooting star for the week, and this suggests that perhaps a little bit of a pullback is coming. This however doesn’t mean that I’m looking to sell gold.

Gold weekly chart, August 19, 2019

Gold markets went back and forth during the week, showing signs of resistance at the $1550 level, and of course support at the $1500 level. However, the candle stick looks less than impressive and therefore I think that we are probably going to drop towards the $1450 level. That is the top of the previous ascending triangle, and I would think that there is a lot of resistance in that region. Ultimately, I believe that the market will continue to favor gold longer-term, but we may have gotten a bit ahead of ourselves at this point. Ultimately, central banks around the world cutting interest rates of course does favor the gold market as people look for “hard money.”

Gold Price Predictions Video 19.08.19

There was an ascending triangle underneath and the $1450 level underneath was the previous resistance barrier. It should now be supported, so I think that a pullback at this point could offer a lot of value in that region. The alternate scenario of course is that we break above the top of the candle stick for the week, which could send this market much higher. We could be looking at a move towards the $1600 level at that point.

I have absolutely no interest in shorting Gold anytime soon, because the trend has been so strong that it makes no sense to try to fight it here, even though we are at significant resistance. All things being equal, I’m bullish but going to need to be patient.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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