Gold Weekly Price Outlook – Gold Has a Choppy Week

Gold Markets Weekly Technical Analysis

The gold market has gone back and forth during the course of the trading week, with the $4,000 level offering significant support. All of that being said, I think you’ve got a situation where market participants are going to continue to determine whether or not they are willing to risk money after such a huge move to the upside.

When looking at the weekly chart, you can see that we had clearly rallied pretty significantly, but now it looks like we are just hanging around just above the $4,000 level. This suggests that perhaps traders are looking at this through the prism of the possibility of getting the market to accept the idea of $4,000 gold. If we break down below the $3,900 level, and to a lesser extent, the $3,960 level, that opens up a deep plunge back to the $3,500 level. Quite frankly, that would not be the worst thing.

It is worth noting that we are seeing a lot of wicks to the upside on a fairly strong amount of volume. We have shown a weaker attempt to rally the second time, not even being able to form a double top. So, I do think gold is probably getting a little heavy here. Whether or not it collapses, I think that’s probably a bit of a stretch, but it is worth noting that the 50-week EMA is all the way down at $3,400, and we are pretty far from it. So, I definitely think it’s an overbought condition. More likely than not, gold will cool off for a while and then probably become a thing yet again next year.

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