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GOLD Weekly Price Forecast – Gold Pulls Back But Find Buyers

Christopher Lewis

The GOLD initially pulled back during the week but then turned around to show signs of life again. This is a market that continues to see a lot of resiliency, and the fact that we formed a shooting star during the previous week and a hammer during this week suggests that we could very well go sideways in order to kill time before a move higher. That being said, that doesn’t mean that we can’t pull back, and quite frankly a pullback is probably a welcome turn of events for those who are bullish because it gives the market the possible value that is needed to turn things back around.

Gold Price Video 20.01.20

If the market was to break above the top of the shooting star from the previous week, that would obviously send this market much higher. If we do break down, I believe that the $1525 level and then the $1500 level should offer quite a bit of support. The 50 week EMA is moving higher, getting ready to attach itself to the $1450 level, an area that has been massive support recently. That being said, I do like gold longer term, but I recognize we may need to drift sideways in order to build up the necessary psychology and momentum to go higher. All things being equal, this is a market that looks bullish but might also be a little bit extended at the moment. I believe that the market will eventually go looking towards the $1800 level, but at this point we do not have anything out there to put a shock into the system.

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This article was originally posted on FX Empire