Gold falls during Tuesday session at major resistance area

Gold markets were choppy in the beginning of the session on Tuesday but pulled back towards the $1338 level to find buyers again. It looks as if we are trying to build up enough momentum to finally break out above the $1350 level for the longer-term, reaching towards the $1360 level. A move above there then sends the market to the $1400 level, which would take a while to get to. If we can finally break above that level, then I think that the market will be free to go much higher in more of a “buy-and-hold” scenario. Pullbacks continue to offer value but be cautious about putting too much to work in one shot. I think that the market will eventually offer plenty of value for the longer-term “buy-and-hold” traders well, but currently we are trying to build up the necessary momentum to make that happen.

I believe that the $1325 level underneath is supportive, and essentially the “floor” in the market going forward. I think that this market will course be affected by the global headlines, as we are worried about things like the conflict in Syria expanding, and of course a trade war between the United States and China. Ultimately, the US dollar has a major influence on gold as well, because if it falls it naturally provides a bit of support to gold. Ultimately, I like the idea of buying dips, but I would do so slowly as we could get a sudden pullback and the like.

Gold Outlook Video 18.04.18