Gold Weekly Price Outlook – Gold Has a Tough Week

Gold Markets Weekly Technical Analysis

The gold market initially surged higher for the week, but it does look as if we’re going to look pretty rough at the end of this trading week. Ultimately though, we are basically in the middle of the trading range. So, despite the fact that this candle is so ugly, the reality is the longer term outlook really hasn’t changed much other than you might see a little bit deeper retracement here as we go looking towards the $3,200 level. The $3,200 level, of course, is a large, round, psychologically significant figure that’s been important multiple times in the past. And as a result, I would anticipate buyers to step into the market if we get anywhere near there. We’ve been in an uptrend for a couple of years.

So truthfully, a little bit of sideways action for a couple of months really isn’t much of a surprise. So ultimately, I think you’ve got a scenario where you’re looking to buy dips. That’s probably how you have to approach this. I think quite frankly, it’s just really difficult for this market to just take off in the middle of summer with a lot of questions asked about tariffs, trade arrangements, things like that. And then of course, we have plenty of geopolitical issues. Nonetheless, I do like buying gold.

I just don’t like buying it in the middle of this consolidation range because it’s literally a 50-50 probability. If we were to break out above the $3,500 level, then it opens up the door to the $3,800 level based on the measured move. But really, at this point in time, we would have to have some type of fundamental reason to get aggressively long, and this time of year, typically doesn’t offer that. You’re looking at a lot more back and forth ranges trading in the summer typically.

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