Gold markets fall but recover during Monday session

Gold markets pulled back to the $1294 level before bouncing, reaching towards the $1300 level which has been resistance. I believe that the market will eventually break out above there, but it might take several attempts to do so. If we do clear that general area, the market is likely going to go to the $1308 level, and then break out above there to go towards $1325 level. In the meantime, I think that short-term pullbacks continue to offer plenty of support, especially considering that the uptrend line has held so reliably underneath. It’s not until we break down below the $1290 level that I would be concerned.

In general, I think that Gold will be reactive to what’s going on between the United States and North Korea, and of course the sudden spat that we have seen between several G7 members, not the least of which would be the United States and Canada. There is the possibility of volatility due to these issues, so at this point I think a lot of traders are looking to pick up a little bit of gold to protect their portfolios. I believe that if the situation deteriorates in any of these headlines, we could see this market higher, perhaps reaching towards higher levels. However, if we get a lot of “risk on” attitude, the market could go down to the $1275 level.

Gold Price Video 12.06.18