Gold Weekly Price Outlook – Gold Gives Back Gains for the Week

Gold Markets Weekly Technical Analysis

The gold market initially did rally pretty significantly for the week, but we have given back quite a bit of those gains and now, although early, it looks like we could end up forming a bit of a shooting star. That of course is a negative candlestick, and it suggests that we are going to run out of momentum.

If we break down below the bottom of the shooting star for the week, then I think it shows that we probably are about to get a pullback. That pullback is more likely than not going to be something necessary. It wouldn’t surprise me at all to see this market pullback to the $3,500 level, but it also wouldn’t surprise me at all to see the market break above the top of the shooting star.

I guess what I’m trying to say is, although we are a little stretched at the moment, I don’t have any interest in shorting this market because gold has so many things working for it. The first thing, of course, is that central banks around the world continue to buy gold. And at this point in time, it’s likely that will continue to be the case. The Federal Reserve is cutting rates, although maybe not as aggressively as people want it. And of course, central banks buying gold means that every time there’s a dip, a large order can come in.

Momentum itself works for gold, and a lot of global uncertainty does as well, not only through trade, but through geopolitics themselves. So, looking at the ascending triangle that we had formed previously, it measures for a move to $3,800 and there’s really nothing on this chart that tells me we can’t get there.

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