Gold Weekly Price Forecast - Gold Markets Get Hammered

Over the course of the past week, gold prices have plummeted to below $1800 an ounce. By doing so, it does demonstrate a certain level of vulnerability, although it is worth noting that the market did fight back. If we were to break down below the bottom of the candlestick for the week, I think at that point in time you might see additional weakness in the gold market, potentially giving up approximately $100.

Rallies at this stage are great buying chances for a consolidation play, but I would not consider them to be much more than that. The market continues to be loud, and of course will be particularly sensitive to interest rates in the United States, which have been fairly noisy as of late. Initially, gold really started to break down, but we did see a little bit of a reprieve as New York got up, so perhaps that is something worth paying attention to as well.

If the market were to break higher, I think that the $1880 level is going to be key barrier. That will be challenging to climb above. If we're able to break over that level, the market may really take off and possibly reach the $2000 level before it's all said and done. That's not likely to happen any time soon, but you should keep an eye out for it just in case. Ultimately, it is probably simpler to trade this market from a short-term viewpoint, given markets are so chaotic and challenging at the present. I feel this market has the potential to exhibit extraordinary strength or weakness given enough time; the odds are around 50/50 right now.