Weekly Gold Price Prediction: Gold Markets Fall

Over the course of the week, gold markets have taken a beating, breaking through the $1800 level, the uptrend line, and eventually the $1750 level. Despite the fact that the market is expected to continue to trend downward strongly, we may have a brief rebound because we are now oversold. It would be fascinating to observe whether or not there is a comeback rally after the attempts to stabilize on Thursday and Friday.

On the other side, it would indicate that we are headed significantly lower if we were to break down below the week's candlestick low. Having said that, I won't be persuaded about a significant shift until we break over the top of this candlestick. The US currency has a significant impact on this market as well, and it should be noted that the US dollar has been very strong. Consequently, it is clear that the situation with regard to the gold market has changed.

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If we were to reverse course and take out this candlestick, one would have to speculate that perhaps we are about to move to the $1880 level. However, I believe that given enough time, we will view this as a situation where we absolutely continue to go to the downside. A move to the $2000 level is possible if that level is broken, but I wouldn't hold my breath for it to happen. At this moment, the market is more likely than not going to experience further high volatility. Keep the size of your position acceptable.