Gold markets had a wild week, breaking above the $1600 level one point. Having said that, we ended up falling right back down to form a massive shooting star. The shooting star was at the recent highs, so having said that it’s likely that the market is ready to pull back from here. I don’t necessarily think that this is the beginning of some type of massive meltdown, but I do think that it is the beginning of a reasonable pullback. By breaking below the bottom of the weekly candlestick, it’s likely that the longer-term trade will probably continue to consolidate overall, as we build up the necessary momentum to go to higher levels.
Gold Price Forecast Video 13.01.20
Keep in mind that the gold markets will move based upon the Federal Reserve and whether or not they are going to be moving monetary policy. Most of the move that we had seen during the week was based out of fear, and that tends to only last so long. A pullback at this point should offer plenty of value underneath, but the question will be whether or not it is at the $1525 level, or perhaps even lower at the $1500 level? Alternately, if we did break out and blow out the top of the shooting star from the week, that would be an extraordinarily bullish sign. It would also probably have something to do with some type of headline or sudden change that has traders freaking out. All things being equal, I suspect that we are going to pull back over the next couple of weeks.
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This article was originally posted on FX Empire
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