Gold markets find support at major uptrend line on Friday

Gold markets initially fell during the trading session, reaching down to the $1290 level before finding support. The longer-term uptrend line below that offered support goes back to the very end of 2016, which of course makes it very important. When you look at the longer-term charts, you can see that we are clearly forming an ascending triangle of sorts that extends to the $1350 level. I think the market will eventually go looking towards that area, but I think that short-term pulling back in this market is likely to go forward and offer plenty of buying opportunities.

The alternate scenario of course is that we break through the uptrend line, and that would be very negative and could send this market down to the $1275 level after that. That’s an area that is massive support, and I think if we break down below that level the market is likely to go much lower than that. Market participants will continue look at gold as an opportunity on dips from what I see, but it could also get a boost due to geopolitical concerns. If the US dollar falls on a “risk on” move, we could go higher than that. Ultimately, this is a market that I think continues to show an upward proclivity, but also will have significant selloffs occasionally. Ultimately, the market breaking down would be a major turn of events and could begin a very bearish trend. However, so far I don’t see anything that tells me this is going to happen.

Gold Outlook Video 04.06.18