Gold markets break below $1300 this past week

Gold markets broke down significantly during the week, testing the uptrend line that has been crucial for the markets before. By breaking below the $1300 level, the market looks likely to continue to go lower, perhaps reaching towards the $1275 level followed quickly by the $1250 level underneath. Otherwise, if we turn around and break above the $1300 level that would be a sign that the market is trying to bounce from this uptrend line, and perhaps go to the $1350 level.

Ultimately, this is a market that I think is going to be paying attention to the 10-year treasury note, and the interest rates offered in the United States. If they continue to rally, and it’s very likely they could, Gold will continue to suffer. Ultimately, the market looks likely to be noisy regardless, and ultimately I think that you are going to be hard-pressed to buy or sell a massive amount of gold in anyone trade, as we should continue to see volatility regardless what happens, and that of course will make hanging onto a trade a bit difficult if you are over levered. The US dollar rising has been a bit of a drag as well, so pay attention to the US Dollar Index as it could give us an idea as to which direction we move.

Gold Technical Analysis Video 21.05.18