Gold Weekly Price Forecast – Gold Markets Stabilize for the Week

Gold markets have gone back and forth during the course of the week, as we have seen a lot of noisy behavior overall. With this being said, the market is likely to continue to see buyers in this area, but we also have a lot of negative pressure above. After all, you can see that there is a massive red candlestick from a couple of weeks ago that looms large. Ultimately, until we take out the candlestick it is probably a market that is going to struggle with the idea of continuing to go higher. With this, I think that the market is likely to see a lot of noisy behavior, but keep in mind you need to be very cognizant about what is going on with the US dollar. Remember the negative correlation between the two assets.

Gold Price Predictions Video 05.07.21

The candlestick for the week is a little bit of a hammer, but quite frankly it does not have much in the way of range so even though it is somewhat encouraging, it is not enough to have me putting money to work. After all, you can see what has happened the last time gold tried to recover. I would need to see an impulsive candlestick to get overly impressed, and quite frankly I think if we do turn around a start rallying again, we have plenty of time to get involved in what could be a large uptrend. On the other hand, if we were to break down below the $1750 level, it is likely that we will go testing the recent lows near $1675, and then likely break down below it to continue falling.

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