Gold Weekly Price Outlook – Gold Continues to See Buyers on Dips

Gold Markets Weekly Technical Analysis

The gold market has initially fallen during the week only to turn around and show signs of life. By doing so, we are testing the patience of the short sellers who, I have no idea why they’re doing it, but they are jumping into the market. I think a lot of traders out there are looking to see whether or not the market can continue the longer term uptrend. Right now, we are just simply working off some of the previous froth.

And the fact that it’s summer probably has a lot to do with what’s going on as well, because quite frankly, summer is a very slow and boring time of the market for most years. We’re right in the middle of a larger consolidation area of $300. And therefore, if we were to break the top of the consolidation area in the form of $3,500, then we could really start to cook to the upside, perhaps going to the $3,800 level.

A breakdown below the $3,200 level opens up a move down to 3,000, where the 50-week EMA currently resides. Pay attention to geopolitics, to bet on the Federal Reserve cutting rates, the US dollar, and types of things, all of the usual to give some type of reason for gold to go higher. That being said, I am not interested in fighting the longer-term trend in this market. Right now, though, I think it’s still a one-way trade, and that’s how you have to trade gold. Short-term dips offer buying opportunities.

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