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Gold Markets Give Up Weekly Gain
By: Christopher Lewis | April 14, 2023

• The gold market has initially rallied during the course of the trading week but gave back the gains as we continue to see a lot of very noisy behavior.

Gold Weekly Technical Analysis

Gold markets have initially rallied a bit during the trading week, reaching toward the $2050 level. However, we have seen the market turned right back around to form a bit of a shooting star, which suggests that we are running out of momentum. It’s worth noting that this is an area where we have seen a lot of the selling pressure in this general vicinity previously, so it must be noted that there is a lot of technical exhaustion just above. If we break down below the bottom of the candlestick, then it’s possible that we could go looking to the $1950 level.

Whether or not we have reached a ceiling again remains to be seen, but we did get here rather quickly, and it’s probably worth noting just how much dumping of gold there was on Friday. This is obviously a very negative sign, and therefore I think you got a situation where we continue to see a lot of noise, but ultimately that noise should be thought of as an opportunity to pick up value on dips if we continue to see more of the same behavior.

We have a long way to go before people stop using gold for wealth preservation, which has been in vogue for a while. With that being the case, the market is going to continue to see plenty of interest underneath, so even if we do sell off from here, one would have to think that it is a short-term opportunity more than a longer-term trend change, at least as things stand at the moment.

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