Weekly Gold Price Prediction: Strong Uptrend Targets the $1,640 Range as Bitcoin Drops Lower

Weekly Gold Price Prediction: Strong Uptrend Targets the $1,640 Range as Bitcoin Drops Lower

By JP Buntinx | JdeCrypto | 20 Feb 2020

While the cryptocurrency markets are a huge disappointment once again, other assets are worth paying attention to. The gold price is moving up again in recent weeks and peaks above $1.615 without too many problems. 

Gold Price Momentum is Promising

Earlier this year, a lot of people were surprised to see the gold price spike to above $1.500. Such a move had been coming for a while. The initial momentum quickly fell apart, however, and prices subsided to the low $1,440 range.

Following this dip, the gold price momentum picked up again. This is evident when looking at recent price charts. The momentum is clearly bullish, for all intents and purposes. As a result, one troy ounce of gold is now worth over $1.615. 

Gold Price Technical Indicators


Bollinger Bands: Following the recent momentum, the BBs are opening up again. It appears the previous period of accumulation is well over and prices continue to push higher. There is ample body to all green candles so far, albeit pushing past the 70.2% Fib level on the weekly will require some extra volume. 

MA50: The MA50 (dark orange line) is moving up rather nicely, which is in line with the actual uptrend taking place. It remains well above the MA200 (indicated by the light orange line). The MA50 is also crossing over the bottom Bollinger Band, which may be interesting to keep an eye on.

RSI: Following the recent accumulation phase, the gold chart has entered slightly overbought territory again. This is not a problem by any means, as it is not an indication of a trend reversal. That said, the momentum isn't as strong as during the push from $1,250 to $1,525. 

Fibonacci Retracement Levels: On the weekly gold price chart, an interesting pattern emerges. Despite seemingly getting rejected at the 61.8% Fib, the price pushed through with ease. It has now also broken the 70.2% Fib, although it remains to be seen if that momentum can last. If successful, a push to the 76.4% Fib, or $1.642.64 is very likely. 

Resistance Levels: For now, the current Fib level will remain a pressure point. A brief retrace to $1.592.31 is not out of the question. However, the current weekly candle seemingly has some volume to it, which can easily push the price to the next resistance near $1.640.

JP Buntinx
JP Buntinx

Cryptocurrency and Fintech enthusiast @Jdebunt on Twitter


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