Gold Weekly Price Outlook – Gold Falls for the Week

Gold Markets Weekly Technical Analysis

The gold market had initially tried to rally for the week, but has since fallen pretty significantly, suspecting that the exhaustion has finally taken over. It does make a certain amount of sense. That being said, I think this is a short-term phenomenon, and I don’t necessarily think that the market is going to suddenly fall apart. I think you’ve got a situation where traders are trying to digest a lot of these massive gains.

The $3,200 level, of course, is crucial as it is a large round psychologically significant finger in an area that was previous resistance. If we break down below the $3,200 level, then the $3,000 level will be support as well. I don’t like the idea of shorting this market, despite the fact that if you watched my weekly analysis last week, I did point out this nasty looking shooting star and suggested that there was real problems. This is a short-term problem. It’s really not until we break down below the $3,000 level that I take any sell-off in gold seriously.

To the upside, the $3,500 level continues to be a barrier, but breaking that obviously would bring a lot of attention to this market yet again. But this arch, this parabolic move, does need a certain amount of value to be brought back into the situation for traders to get involved. There are still plenty of geopolitical events. And it’s probably worth noting that the stock market is starting to rally pretty significantly, and that does take a little of the hot money out of this market, so be aware of that. I’m looking to pull back sales buying opportunities, and I’m looking at the $3,000 level for a floor, assuming that $3,200 doesn’t hold.

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