Gold Weekly Price Outlook – Gold Rallies Again for the Week

Gold Markets Weekly Technical Analysis

The gold market has rallied a bit during the course of the week to pierce the crucial $3,500 level, but we are still struggling to stay above anything in that region. So, it’ll be interesting to see how this plays out. But clearly gold is bullish in general. We have two scenarios here that I’ll be looking at. Can we break above the top of the weekly candlestick? Because if we can, then for me at least, I think that opens up the possibility of the next leg higher.

If we pull back a bit, then we may just stay in the consolidation, which I can make an argument for considering that the month of August typically is pretty quiet when it comes to volume, and unless we get some type of external factor, which we very well could, it’s likely the gold will be somewhat choppy and quiet. Nonetheless, I like the idea of buying dips. I don’t have any interest in trying to get too cute here. I’m not trying to short the market.

Even if you told me the $3,500 was going to be held and we were going to drop $200, I would not short this market. Rather, I would buy it $200 lower. The momentum has been absolutely brutal for some time, and I think you need to be aware of that. I think that is something very important.

The $3,200 level on the bottom is a massive floor in the market that I’ve been watching for what seems like a lifetime now. And of course, that hasn’t even been threatened recently. In fact, I think the $3,300 level is starting to make an argument for being the floor. As we go into a little bit more liquid types of markets in September, I would anticipate that gold will go higher, but in the short term, we may struggle just a bit. Either way, I’m not shorting long only.

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