Gold Weekly Price Outlook – Gold Gives Back Much of The Gains

Gold Markets Weekly Technical Analysis

The gold market initially rallied during the week, only to turn around and break significantly lower. It looks like the $4,000 level is an area that will be causing a lot of interest. When you look at this, you can see that the gold market looks as if it is trying to top a bit, and it is worth noting that the volume has picked up quite drastically. When you look at the daily chart, it certainly looks as if it is in the process of trying to break down. After the Tuesday candlestick, we’re just dead in the water as the market cannot seem to pick up its momentum to the upside again.

The question is whether or not we can get any follow-through. If we break down below the $4,000 level, it opens up the possibility of a move to the $3,800 level, which was the measured move of the ascending triangle that we had been in previously. Ultimately, I think that makes a lot of sense. But I don’t necessarily like shorting this market anytime soon, I just think it needs to come back to reality a bit, as things were far too overdone.

That being said, anything underneath $3,800, and I think you’ve got a real problem. The market has been parabolic for a while now, so a little bit of giveback is probably the healthiest thing we can get here, second only to going sideways to work off some of that excess froth that we had seen in this market over the last several months.

For a look at all of today’s economic events, check out our economic calendar.