Gold Weekly Price Forecast – Gold Markets Bounce After Initial Selloff

Gold markets have fallen significantly during the course of the week, reaching down toward the $2000 level, showing signs of life again.

Gold Markets Weekly Technical Analysis

Gold markets have fallen pretty significantly during the trading week, but then turned around quite drastically. We have had both the CPI and the PPI numbers coming out during the week, which of course contradicted each other. So, we have seen a lot of upward pressure from a trend line and the $2075 level above would be a barrier that we need to overcome. If we can break above there, then I think we really start to move.

That being said, I think we’re going to see a lot of choppy behavior and it does make a certain amount of sense. I mean, there’s a lot of uncertainty out there. Nonetheless, I think longer term traders really need to see the $2,075 level overcome, so that we can start to see a bigger move. A breakdown below the $2,000 level would be rather negative. I don’t see that happening anytime soon, but it is something to keep on your radar because that would show real negativity coming back in.

Gold will continue to see a lot of volatility, but I do think at this point in time it is a longer term “buy-and-hold investment” for a lot of people. After all, there are a lot of geopolitical issues out there as well that could drive the market, but we also have central banks around the world looking to perhaps start to loosen monetary policy, which does a lot of good things for gold, as well as many other assets. At this point, I think the gold market is likely to see a lot of money flowing into it over the longer term.

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