Gold Weekly Price Outlook – Gold Looks a Bit Exhausted

Gold Markets Weekly Technical Analysis

The gold market has been all over the place during the trading session on Friday, and this has produced a less than stellar candlestick for the week. At this point, we are overdone. So, a pullback from here does make a lot of sense.

I believe that the $3,000 level should be significant support, not only from a structural, but also from a psychological standpoint. So it’ll be interesting to see if that plays out. If we were to break down below the $3,000 level, then I would look to the $2,900 level. Keep in mind that we just kicked off a bullish flag a couple of weeks ago and suggested that we were going to go to the $3,300 level.

And I still believe that because, quite frankly, there are a lot of dangers out there when it comes to the economy, with the tariff wars themselves being a big enough reason to think that this could go higher. Nonetheless, this is a market that I think will continue to be pretty wild and volatile. But I still favor the upside despite the fact that we are forming a very ugly weekly candlestick.

I have no interest in shorting gold until we get well below the $2,800 level. And even then, I would have to take a look at what’s going on around the world. We could continue to see a lot of volatility and therefore you need to keep your position size very reasonable. Recognizing the gold can be pretty wild in these types of times. Nonetheless, we are a long, long way from reversing the trend now. So just keep that in mind when you are putting money to work in this market.

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