Gold Weekly Price Forecast – Gold Markets Show Support

Gold markets have gone back and forth during the course of the week, showing signs of volatility yet again, reaching down towards the 50 week EMA. However, we have bounced from there and formed a candlestick that is essentially a hammer. This suggests that we are possibly going to see a bit of a bounce but as long as stimulus is all over the place and we are not sure what is going to happen with that scenario, it is obvious that we need to be very patient with the trade if we are involved in it.

Gold Price Predictions Video 25.01.20

If we can break above the highs of the week, that more than likely opens up the possibility of a move towards the $1900 level. Above there we then could see a move towards the $1960 level, but it may take some time to make that happen. After all, we are not completely sure about what happens next with the stimulus, just that there will be one. The stimulus probably will not be as big as originally thought, and that of course is something to pay close attention to. That could give a little bit of a lifeline to the US dollar in the short term, as it is oversold anyway.

As far as selling gold is concerned, I have no interest in doing so until we break below the $1700 level which would be a pretty significant move. Longer-term, I believe that we are going to go looking towards the $2100 level, but it may take a significant amount of effort to finally get there. Gold continues to be choppy, but it seems as if it is trying to form some type of bottoming pattern.

For a look at all of today’s economic events, check out our economic calendar.