Lingrid | GOLD Weekly Technical Analysis

The gold market experienced another rally this week, reaching the significant key level of 2000 before showing signs of uncertainty near that level. Currently, the market is showing signs of a further possible pullback. The 2000 key level is seen as a strong resistance and this level will be influenced by interest rate or further economic factors which could have a further negative impact on the gold market. I think the market will remain volatile, but a pullback seems likely in the short term.

Additionally, lower tensions in the Middle East could also have a negative impact on gold. However, if the 2000 level is successfully broken, the market may target the 2050 level. This can be seen on the monthly chart, which clearly shows an engulfing pattern, which is a bullish signal. I think in general a short period of weakness is expected before further upside moves.

Comment:

The price perfectly fulfills my last idea. It tapped the target level and bounced off. As you can see, the market is heading toward support and an upward trendline. The price broke through the small range zone before. The market is at strong resistance at 2000, and I expect the price to form some range or choppy market, then continue moving upwards from the support level and trendline. On the daily chart, the market gives us a possible range zone between 1960 and 1995. An alternative scenario is a deeper pullback. It can form a two-legged pullback, potentially retesting the strong support level at 1950. My goal is the resistance at 2015

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻