Gold markets had a volatile week, breaking above the 1600 mark fell rto form a Shooting Star. The pattern was at the recent highs, so, it is likely that the market is ready to pull back from here.
By breaking below the bottom of the weekly candlestick, it is likely that the longer-term trade will continue to consolidate overall, as the market builds up the necessary momentum to go North again.
Gold Price Forecast Video 13.01.20
Keep in mind that the gold markets will move based upon the Fed 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 on fear, and that tends to only last so long.
A pullback at this point should offer plenty of value below, but the Big Q will be whether or not it is at the 1525 level, or perhaps even lower to the psych mark at 1500 level.
Alternately, if gold 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 have something to do with some type of headline or sudden change that has traders buying on FOL.
All that said, I expect gold to pull back over the next couple of weeks.
Have a terrific weekend