Gold Weekly Price Outlook – Gold Continues to See Support

Gold Markets Weekly Technical Analysis

The gold market has been back and forth all week as we continue to see a lot of questions asked of this market. The $4,000 level is sitting right around the current price, and I think ultimately, we’ve got a situation where this is a market trying to work off some of its excess froth, as participants continue to see short-term pullbacks as potential buying opportunities. The $4,000 level is a large, round, psychologically significant figure that a lot of people will be watching. But even if we were to break down below this area, I think there’s also support at the $3,800 level.

The $3,800 level is an area that people had targeted after the ascending triangle had taken off to the upside, and that was your measured move. In other words, there are a lot of reasons to believe this is a market that will pay attention to that area. If we break to the upside, then the $4,200 level offers resistance, as we’ve seen a lot of back-and-forth noise.

Ultimately, this is a market that I think is being pushed around by central bank buying as well as the possibility of interest rates dropping. We’re not entirely sure yet. There are also global concerns about the overall condition of the economy and trade tariffs. With that being said, we had shot straight up in the air, followed by a pretty significant pullback, and now I think you’ve got a scenario where a lot of back-and-forth trading is probably ahead. But if we do break down, and especially if we break below the $3,800 level, I think gold might be in trouble.

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