Gold Weekly Price Forecast – Gold markets show signs of exhaustion

Gold markets showed signs of promise during most of the week, but the Friday candlestick was horrible. By forming the candle stick that it did, we ended up forming a shooting star right at the all-important $1300 level.
Christopher Lewis
Gold weekly chart, January 07, 2019

Gold markets initially rallied during the week, slamming into the $1300 level. The $1300 level of course is a psychologically important figure, and the fact that we turned around of form a hammer after the brutal candlestick on Friday suggests that perhaps Gold is going to continue to be very noisy. At this point, I think that the $1250 level underneath will be supportive, and perhaps even the top of the up trending channel that we just broke out of. It looks as if we are getting a pullback. I look at this pullback as a potential buying opportunity and would probably look for a longer-term buying opportunity based upon the daily chart rather than the weekly chart.

Gold Prices Video 07.01.19

Because of this, it will give you a more granular opportunity based upon the titer stops that you can employ, and of course the fact that there are multiple support levels underneath. At this point, I think that the market participants will be looking for value, as gold has certainly broken out to the upside. Ultimately, I think that we are probably going to go looking towards the $1400 level, but if we did break down below the $1250 level, then I think we could drop back down to the $1200 level. I think that this pullback will be looked at as a nice entry though, so be patient and look for buying opportunities this coming week, especially if the US dollar gets hammered again as it will lift the value of gold by default.

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