Gold forecast for the week of August 1, 2016, Technical Analysis

Gold markets rally during the course of the week, bouncing off of the 1320 handle. It looks as if we are continuing to grind sideways and try to build up enough momentum to break out even higher. I am very bullish of gold at this point in time, and have no interest whatsoever in selling it. I believe that the $1300 level below should continue to be very supportive, and that the run from the European Union should continue. This of course has people buying hard assets such as gold, and the US dollar simultaneously over the longer term.

With this being the case, I believe the gold continues to reach towards the $1400 level, and then $1500. However, it’s not a silly can be the easiest thing to deal with, and with this being the case it’s likely that you will have to be able to deal with a lot of back and forth. The $1200 level below of course is massively supportive as well, so having said that it’s sooner or later going to be an opportunity to buy again and again. If you are a longer-term investor, gold markets certainly look like they are very bullish given enough time, and the market will probably attract quite a bit of buying pressure.

Quite frankly, from the longer-term perspective, the $1200 level below is where I change my opinion on the trend, so at this point in time there is no way to sell this market. If we did break down below the $1200 level though, this would drive the market down much lower. I would assume that this would involve some type of major economic shock, which I don’t see coming anytime soon so having said that I think that buyers will return again and again based upon the long-term outlook for hard assets as there are a lot of economic concerns coming out of the European Union and of course United Kingdom given enough time. With this, I have been buying gold for the long-term, and will continue to do so.