Gold markets continue to chop around on Monday

Gold markets have initially falling during the trading session on Monday, reaching down towards the $1310 level, an area that has been both support and resistance as of late. The market bouncing from here means that we will probably go to the $1320 level. The $1300 level underneath should be massive support, as not only is it a large, round, psychologically significant figure, but it is also the scene of a major uptrend line. I do like gold longer-term, but I also recognize that there are a lot of moving pieces to deal with, not the least of which is going to be the US dollar strengthening which puts negative pressure on this market, but we also have a lot of geopolitical concerns that can push this market higher.

There is the possibility of both gold and US dollar strength, despite what some people will tell you. This was what we had seen during most of the 1980s, so you shouldn’t put a trade on just simply because the US dollar is doing something. It is a secondary indication of where we are going, and nothing more. I believe that the market will eventually go to the $1350 level above, an area that has been a very important level as well. If we were to break down below the uptrend line, that could change everything, but right now it doesn’t look as if we are trying to do so. Keep your position small and add only once you get confirmation.

Gold Price Video 08.05.18