Gold has choppy session on Wednesday

Gold markets rallied significantly during the trading session on Wednesday, reaching towards the $1348 level. I think that the market rolling over the way it did shows just how volatile things are right now, and I believe that the fears of trade wars continue to be a major issue. I believe that the $1350 level above will be significant resistance, but if we can break above there, the market probably goes to the $1375 level. Ultimately, every time we pull back I think there should be plenty of buyers underneath, perhaps reaching towards the $1400 level longer term. That’s an area that if we can break above, could send this market much higher, perhaps to the $1800 level, possibly even $2000 after that.

Ultimately, I think that the market should continue to look at pullbacks as value, as there are a lot of fears around the world right now. Gold is a bit of a safety investment for traders, so I like the idea of buying these dips when they occur, as the $1320 level underneath is support. I believe that the market continues to find plenty of reasons to rally, but it’s going to be noisy in the process. I suspect that we will be very well served to keep the position size small, because the way that this market will go back and forth, it’s likely that we will continue to see wild swings. However, as we break above resistance above, it’s likely that the traders will then be able to add to a core position, in anticipation of the brake higher for the longer-term.

Gold Price Forecast Video 05.04.18