Gold Weekly Price Outlook – Gold Breaks Out for the Week

Gold Markets Weekly Technical Analysis

The gold market looks strong again as we are rocketing higher for the week. With the breakout, it now looks as if the $4400 level should be support. There should also be some buying pressure right around $4200, but with the week closing out the way it’s about to, it’s very likely that we may not even pull back significantly. If we do, you have to look at that as a potential gift, as you can buy gold on the cheap.

Central Banks Around the World Are Buying Gold

This is a market that, quite frankly, is interesting to watch because there are a lot of different things going on at the same time. That doesn’t hurt anything, but we also have a lot of debt out there, and of course, gold will service that debt. It’s also a way to back up the banking reserves of a nation, and this, of course, is a major issue with all of these debts.

Now, we also have lower interest rates coming around the world, and that is going to drive gold higher. What that does suggest is that people are expecting more inflation coming down the road. That’s probably not a real stretch, but nonetheless, gold is definitely on an absolute tear to the upside, and I would not get short of it. Short-term pullbacks that bounce, those are buying opportunities. Long-term, can we get to $5000? I think yes. I think we could see $5000 maybe in March; we’ll just have to wait and see.

It could happen much quicker. We could get a run as we’ve had in silver, which, with gold, would be an even bigger problem for the financial system. Gold is obviously much more in demand and used to shore up balance sheets much quicker than silver is, and of course, it is the currency of central banks. There’s no way to short this market.

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