Gold Weekly Price Outlook – Gold Has Another Strong Week

Gold Markets Weekly Technical Analysis

All things being equal, the markets in gold look very strong, but it’s also worth noting that the $4000 level has caused a certain amount of trouble. All things being equal, this is a market also that has been overdone and I think it desperately needs a pullback.

That being said, we haven’t really gotten that yet. And there have been multiple times I could have said that along the way. So, I think traders will be looking for some type of pullback that they can take advantage of. Perhaps the $3,800 level is an excellent area, as it was the target of the ascending triangle previously. There is a certain amount of market memory there. And I think you have to look at that as a potential move.

But the other thing that we could do is perhaps see this market through the prism of one that needs to go sideways to work off some of the excess froth. So, with this, I think you’ve got a situation where the only thing you can’t do is short the market. And therefore, I think you need to look at this as a market that either kills some of the excess froth by going sideways or offers value by dropping. Either way, I don’t think the gold rush is over. I just think that it’s extended. And at this point in time, it’s a little bit risky to go into the market with both hands and just chase it because you could very well find yourself down 10 % pretty quickly.

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