Gold markets continue to struggle on WednesdayGold markets fell during the Wednesday session, struggling with a stronger US dollar as is the usual correlation. However, I think there is significant amount of support underneath at various levels, if you can pay attention to those levels, you can navigate around this market in the short term.
Gold sold off during the day on Wednesday, as we continue to see a strengthening US dollar. We are below the $1300 level, which has been important more than once in the past. Because of this, I think we continue to see a lot of volatility and selling pressure. However, I do think that there are couple of support level underneath that you need to pay attention to, whether you are bullish or bearish. The next support level is the $1275 level, so I think we would see a bit of a bounce from there. Obviously, the psychologically important $1300 level above should be resistance, and a break above there would be a very positive sign.
Most of what we are seeing in the precious metals markets has to do with the US dollar more than anything else, and I think that will continue to be the case. If the US dollar continues to strengthen, that of course is bad for both silver and gold, and will show itself on this chart with a lower pricing. Longer-term, I still believe in gold, because there is a lot out there that could move the price higher, not the least of which would be geopolitical concerns. I do think that if we break above the $1300 level, that could be a signal that we are about to move higher for another $25. However, I recognize that in the short term we will probably continue to pay attention to interest rates coming out the United States, which have a course been rising, which is good for the greenback and by extension bad for gold.