Gold Weekly Price Forecast – Gold markets test major resistanceGold markets rallied significantly during the week, breaking towards the $1250 level , an area that has been relatively resistive. As we close out the week, it looks as if we are on the precipice of a move.
If we break above the top of the weekly candle stick, then I think the market probably goes to the $1300 level. Otherwise, I think that the market probably pulls back a bit, but it certainly looks as if gold is trying to make a statement, as the $1200 level has been massive support, while the $1400 level above has been massive resistance. I think at this point, it looks more likely that we continue the longer-term consolidation. The longer-term consolidation doesn’t necessarily mean that it’s going to be easy to get up there, but I think that the greenback rolling over would be a boon to gold traders.
Gold Technical Analysis Video 10.12.18
The alternate scenario is that we break back down below the $1200 level, then we should go down to the $1000 level, an area that of course is crucial from a psychological and structural standpoint on longer-term charts. In general, I believe that the markets will be making a lot of decisions over the next couple of weeks, based upon what’s going on with the greenback and global growth. There are a lot of crossing the headlines that can move expectations for the US economy, and the fact that the Federal Reserve has suddenly become a bit dovish suggests that perhaps we will continue to see Gold rally as a hedge. I think there’s a lot of confusion right now about the Federal Reserve but it certainly seems as if there is a coordinated effort to talk down the dollar, and perhaps interest rate expectations.