Gold markets flat on Friday as we continue to see interest rate sensitivity

Gold markets when sideways during the trading session on Friday as we were relatively quiet. There is a lot of interest rate concerns out there as the Federal Reserve looks likely to tighten monetary policy, and of course the bond markets have been selling off, bringing in higher interest rates. Ultimately, the market continues to see the $1300 level as resistance, as it is both psychological and structurally important. I believe that the market will continue to find sellers if interest rates continue to climb. The next support level was below at the $1275 level, perhaps even lower than that.

We are testing an area that could be thought of as the uptrend line on the longer-term charts, so I think it’s likely that we will see a bit of stagnation in the short term. If we break above the $1300 level, market should then go looking towards the $1325 level. Ultimately, this is a market that will continue to be very noisy, but I think there are several geopolitical issues out there that could also turn things around and have the market rocketing to the upside. I don’t think there is more than about a 10% downside from here, with the $1200 level being the “floor” overall from what I can see. I think that we will continue to see a lot of volatility regardless of what happens, so keep that in mind and keep your position size relatively small in this market.

Gold Prices Video 21.05.18