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Gold markets chop sideways overall to open the week

By:
Christopher Lewis
Updated: May 15, 2018, 05:01 UTC

Gold markets when sideways overall to open the week on Monday, testing the $1318 level for support, an area that has been resistance in the past. I think that ultimately we could go higher in this market, and a bit of US dollar weakness could help send gold to much higher levels as precious metals of course have that correlation.

Gold daily chart, May 15, 2018

Gold markets have gone sideways over the last several sessions, and as we start the week it appears that Monday will be any different. On a fresh, new high, the market should then go looking towards the $1350 level above, perhaps offering a significant amount of resistance. If we can break above there, the market should then go to the $1400 level. Short-term pullbacks from here should be buying opportunities, because I think there is plenty of noise between here and the $1300 level underneath, which is a major level on the longer-term charge.

Pullbacks should be thought of as value, especially if the EUR/USD market can rally, one of the biggest benchmarks for US dollar strength or weakness. With a falling US dollar, quite often people will put money to work in the precious metals market. I believe that longer-term goal markets will rally, because quite frankly there are far too many issues in the world to think that people won’t want some “safety” when it comes to precious metals. If we break down below the $1300 level though, I would consider this market likely to reach towards the $1275 level underneath. That would be a bit of a “reset”, so I think that we will need to pay attention to that move and show a significant amount of patients. I have no interest in shorting gold presently, there are just too many things out there that could cause issues.

Gold Price Video 15.05.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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