Hey Traders! Welcome to our Weekly Gold Forecast at Golden Pips Network.
Gold presents an intriguing market structure for the upcoming week, with critical levels on both the upside and downside. Coupled with major fundamentals such as a U.S. bank holiday and the oath ceremony for President Trump, gold traders can anticipate significant market movement. Let’s dive into the detailed analysis and potential trade setups for the week.
Key Gold Levels to Watch
Upside Zones
- $2760: A high resistance zone that may act as a key target for buyers or a reversal point.
- $2747: A minor resistance level, which could provide temporary hurdles for upward momentum.
Downside Zones
- $2720: A significant support zone tested multiple times, making it a critical area for decision-making.
- $2692: A make-or-break level that could dictate the direction of gold prices.
- $2660: A deeper support zone that may come into play if the price breaks through lower levels.
Fundamentals to Monitor
Next week includes major events that could influence gold prices:
- U.S. Bank Holiday: Typically associated with lower market activity, but can still set the stage for volatility.
- President Trump’s Oath Ceremony: Political events often affect the U.S. dollar, which inversely impacts gold prices.
A stronger U.S. dollar generally drives gold prices lower, and this week’s fundamentals suggest limited buy opportunities and the likelihood of a retracement.
Gold Trading Scenarios for the Week
Bearish Scenarios (Selling Opportunities)
- Zone Breakdown at $2692:
- If gold breaks below this level, expect a further decline toward $2660 or possibly $2620.
- Recommended Trade: Sell below $2692 with stop-loss above the level and target $2660.
- Rejection at $2750:
- A sharp rejection at this resistance level could provide a strong sell opportunity, given gold’s historical tendency for steep declines.
- Recommended Trade: Sell near $2750 with a target of $2720 or lower.
Bullish Scenarios (Buying Opportunities)
- Reversal at $2692:
- If gold holds at this make-or-break level, consider a buy with a tight stop loss.
- Recommended Trade: Buy near $2692, aiming for a target of $2722.
- Breakout Above $2722:
- A decisive move above this level could indicate bullish momentum, with a target at $2750.
- Recommended Trade: Buy above $2722, targeting $2750.
Key Takeaways for Gold Traders
- Bullish Setup: Look for buying opportunities at $2692 or after a breakout above $2722.
- Bearish Setup: Selling opportunities are more likely, especially with a rejection near $2750 or a breakdown below $2692.
- Deep Declines Possible: If gold breaks below $2692, deeper drops toward $2660 or $2620 could occur.
Conclusion
The upcoming week is shaping up to be a pivotal one for gold traders. While gold remains bullish overall, the potential for significant retracements makes selling opportunities more appealing. Pay close attention to key levels like $2692 and $2750, and be prepared for heightened volatility due to major economic and geopolitical events.
Stay disciplined, trade wisely, and good luck!
