Gold markets fall during the week, but find support at vital level

Gold markets fell during most of the week but found enough support near the $1300 level to turn around and form a hammer. It’s not until we break below the uptrend line that I think this market could unwind a bit, and in the meantime I think that we stay in the consolidation that we have been in a while, and the $1350 level would be the top of the consolidation. Now that the uptrend line has shown itself to be supportive again, it’s likely that we could go towards the top of the range. If we can finally break above the $1375 level, we could then go to the $1400 level.

Alternately, if we break down through the uptrend line, we probably go down to the $1275 level, and then eventually the $1250 level. Pay attention to the US dollar, because it has a massive influence on what happens here, not to mention the fact that the interest rates in America have been rallying, which is a natural killer for gold. However, there are lot of geopolitical concerns out there as well, and that of course can push this market to the upside. I think we will continue to see a lot of noise in this market, so I prefer less leverage rather than more, as it helps traders ride out the volatility that we see.

Gold Technical Analysis Video 07.05.18