Gold Weekly Price Forecast – Gold Plunges to Bottom of The Massive Consolidation Area
Gold Weekly Technical Analysis
Gold markets have fallen significantly during the trading week again, as we are threatening the $1700 level. The $1700 level is an area that we have seen a lot of noise at, as it is the bottom of the larger consolidation area and where we are hanging around the 200 Week EMA. Ultimately, this is a market that I think will pay close attention to this area, and as long as we continue to see the area hold, there is still the possibility for gold to recover.
That being said, this is all about the US dollar, and interest rates in America. If they both continue to climb, it is only a matter of time before gold breaks down. On the other hand, if the US dollar pulls back a bit, it could give Gold an opportunity to recover a bit. However, it’s not until we break above the $1800 level that I would truly be impressed with any type of rally. At that point, then we can start to look to the upside for a bigger move.
On a break down below the $1700 level, then we could lose a couple of hundred dollars rather quickly. That being said, we will have to pay close attention to this market, but I think the most likely outcome is going to be a bit of a rally that gives up momentum. In other words, I continue to look at this as a “fade the rallies” type of market, but at this point, we are a bit more overdone and therefore you have to step back.
Gold Price Predictions Video for the Week of 18.07.22
For a look at all of today’s economic events, check out our economic calendar.