Gold Weekly Price Forecast – Gold markets form supportive weekly candle stick

Updated : Aug 23, 2019, 16:53 UTC1min read
Gold markets initially fell during the week but found enough support near the $1500 level to turn things around of form a bit of a hammer. We are at extended levels though, so the question then becomes whether or not we can continue this move.
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Gold markets continue to see quite a bit of buying pressure, but at this point it looks like we are starting to get a bit extended. Quite frankly, this market desperately need some type of pullback, and unfortunately we did not get a significant one yet. It is because of this I would not be surprised to see the market roll back towards the $1500 level before we can go much higher. Having said that, if we did break above the $1550 level, then it’s possible that we could go to the $1600 level.

Gold Price Video 26.08.19

Regardless, and the fact that it’s so obvious that we are overbought, I don’t have any interest in trying to sell this market. I think we are simply looking at gold as a value proposition, and ultimately the gold market should continue to go much higher of the longer-term due to loosening monetary policy coming out of central banks around the world. This is not only a phenomenon against the US dollar, but against just about any other currency that you can think of.

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I believe that the $1450 level underneath is the top of a significant ascending triangle that should offer plenty of support and essentially a “floor” in the market. Ultimately, I would love to buy gold down there, but I don’t know if we get that opportunity. Either way, we need to find pullbacks on short-term charts at the very least in order to take advantage of the trend. Regardless, I would not jump in with both feet, because we have so much in the way of overextension here.

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