Gold Weekly Price Forecast – Gold stabilizes for the week
Gold markets were relatively messy during the week, but in a tight range. This is actually good news for gold, as it had been selling off so relentlessly over the last couple of months. The question now is whether or not we can break down below the $1200 level? If we do, that of course is something to pay attention to, because it would be a major turn of events. Overall, I believe that if we can hold $1200, this might be a nice longer-term buying opportunity. That doesn’t mean that it’s going to be easy to do, but it could be the opportunity that a lot of longer-term buyers have been waiting for.
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Alternately, if we break down below the $1200 level on at least a daily close, if not a weekly close, then this market could unwind rather drastically. In general, I suspect that it looks like we are oversold, so I would lean towards the upside, but there is an obvious point of support that if it gets broken, we would be looking at a potential strong selloff. I believe at this point, it’s likely that we will see a lot of short term volatility so I would jump into the market with small positions if you’re going to play it from a longer-term standpoint. Remember, there’s a lot of concern about global trade right now, which has been strengthening the dollar, it think it’s worse it could put bearish pressure on gold due to the currency headwinds.