GOLD weekly market FORECAST

[Ronald Ray]

Gold prices went down after some important news came out. One was that the FED emphasized the need for continued tightening to control inflation . Another was that weekly jobless claims went up a little bit, but still remain low historically. Gold price has been bouncing around a lot lately and has been on a downward trend. Right now, the price is down a bit and not at highest point. The recent price action on the 4-hour timeframe forms  a bear flag breakout (a pattern where the price moves downwards over a period of several days or weeks) has led to the price of gold dropping below the 1870 support level . Traditionally, this would be seen as a sign of more downside in the gold market. Additionnally a bearish engulfing candle suggest that on the Monday price may go down. Price action is following my forecast from 2 week ago where I suggested that the price was at the reversal zone.