Gold Weekly Price Outlook – Gold Continues to See Buyers

Gold Markets Weekly Technical Analysis

The gold market continues to show plenty of bullish pressure at this point, and this has been yet another bullish week as we have just screamed hire. We previously had formed a bit of an ascending triangle that measured for a move to $3,800, which I have marked on the chart. This is an area that we hit the previous week, and now it looks like that could be support based on this candlestick. Ultimately, I do think that gold is going to the $4,000 level, but it’s hard to buy a market that has been positive seven weeks in a row.

What I mean by that is you don’t want to chase it. The time to buy was a few hundred dollars south of here, but as pullbacks occur, retail traders out there will be interested in trying to short the market, claiming it’s gotten too far up in the air and therefore we need to fall. The correct way to look at this is buying value on dips. And I think that’s really where we’re at right now.

The real question is, do we get a pullback of any significance between now and $4,000? When you look at the daily chart, you can see that Thursday wasn’t somewhat tough day, although it recovered nicely. So, I think we’re getting closer to that pullback. At the very least, we need some sideways action to work off some of this excess froth, because we’ve basically gone straight up in the air for $400 over the course of five weeks.

There’s no way I would short gold under any circumstance in this environment. Central banks out there continue to buy on dips and just buy flat out, providing a perpetual bid in this market. We have plenty of geopolitical concerns out there, and of course, the Federal Reserve is cutting interest rates. So, think that comes into the picture as well. I remain bullish.

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