Gold Weekly Price Outlook – Gold Sideways for the Week

Gold Markets Weekly Technical Analysis

The gold market has gone back and forth during the trading week as we are simply hanging around just above the $4,200 level. At this point, the market is trying to kick up enough momentum to break out to the upside and challenge the $4,400 level, but we just don’t have it quite yet. Quite frankly, I think we are entering a period of consolidation here, and that’s probably a good thing after the massive move higher that we had seen. Ultimately, as long as we can stay above the $3,950 level, we are just in a consolidation range. And again, I think that’s actually good news because the market had gotten so far ahead of itself in such a short amount of time.

After all, the last thing you want to see is a parabolic market become even more parabolic because that almost always ends in some type of ruinous behavior. If we break to the upside and clear the $4,400 level, at that point, $4,500 would be the next logical target. And then you really start to have a serious conversation about whether or not gold can be $5,000 an ounce.

It probably will eventually, but as things stand right now, and the fact that we are heading into the end of the year, it’s very possible that maybe we just kind of hang out for a while, maybe a couple more weeks of sideways action with an emphasis on buying on the dip when it comes to shorter term charts such as the daily or maybe even the hourly chart. One thing’s for sure, though, as long as we’re above $3,950, the thought of shorting gold isn’t even a thought.

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