Gold Weekly Price Outlook – Gold Has Another Strong Week

Gold Weekly Technical Analysis

Gold markets have rallied again during the week as it continues to look like we are just going to grind our way toward the $4,000 level. We had previously had a massive consolidation of an ascending triangle that measured for a move to the $3,800 level. We have, in fact, seen that happen. And now the target being hit has people asking the question, What’s next? Well, it is possible that we will get a little bit of a pullback, but I think at this point, $3,700 is going to try to offer pretty significant support, as it has offered resistance previously.

And even if we were to break down below there, I think you have the $3,500 level to offer support as well. Keep in mind that geopolitical issues out there continue to be a major problem. And with that, you would have to assume that there is going to be a little bit of a bid for gold. Central banks around the world seemingly don’t really know what they’re doing. And that causes a little bit of uncertainty. But the one thing that they are doing is buying gold, which puts in a perpetual bid.

I have no interest in shorting the gold market. And quite frankly, it would not surprise me at all to see it hit the $4,000 level, probably by the end of the year. Short-term pullbacks of a week or two are possible. But really, at that point in time, you’re looking at buying opportunities, as has been the case for at least two years. Again, I have no interest in shorting gold, but if it were to fall hard enough to break significantly below the $3,500 level, then you have to weigh the fundamental situation. But as things stand right now, this looks like a very strong market.

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