Gold Weekly Price Outlook – Gold Continues to See Back And Forth Action

Gold Markets Weekly Technical Analysis

Gold markets have fallen a bit during the trading week as we have seen a continuation of this back and forth noise. The $3,500 level continues to be a significant resistance, but if we can clear that, then I think it opens up a much bigger move. Really, no matter how you look at this chart, it’s hard not to notice that we have been in an uptrend since October of 2022. So there’s really only one way to trade this market, and that is to the upside. Short term pullbacks offer buying opportunities and we have seen that time and time again. And if we break down to the $3,300 level, I think there would be plenty of support. Then after that, we could be looking at $3,200, which is basically the bottom of the summer consolidation.

Speaking of summer, it is summer, and volume drops off of the cliff here in gold and many other assets. So, I think the sideways chop makes quite a bit of sense. Ultimately speaking, I do think that eventually we get above the $3,500 level and try to make the measured move of $300 to reach the $3,800 level based on this consolidation. If we were to break down below $3,200, then we might have a different conversation, but right now the world is trying to price in the idea of the Federal Reserve cutting rates. If they do in fact cut rates later this year, that should only add more fuel to the fire in a market that’s backed up by central bank buying anyways.

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