Gold falls during the week, looking for support underneath

Based upon the uptrend line that I have on the chart, I suspect that buyers are willing to step in and pick up gold when we pull back like we have. We are consolidating between the $1300 level on the bottom and the $1350 level on the top. If we can clear the $1375 level, I think the market will then attack 1400, and perhaps become more of a buy-and-hold situation where we reach towards the $1800 level. Short-term pullback should be buying opportunities, but I think that the longer-term inclined investor is probably not only picking up physical silver, but also adding slowly in preparation for the break out. If we were to break down below the uptrend line, that could change everything, but right now it doesn’t look likely to happen. Pay attention to the interest rates in the niceties, because if they continue to climb rapidly, that could be reason enough to break this market apart.

Break down through the uptrend line could send this market to $1200 rather quickly, but that will almost certainly be in concert with higher interest rates in America. I don’t think one happens without the other. Because of this, my base case scenario is that we buy short-term pullbacks and build up the momentum necessary to go higher. Geopolitical concerns should also continue to put a bit of bearish pressure and a bit of a “floor” under this market.

Gold Technical Analysis Video 30.04.18