Gold markets very noisy around $1300

Gold markets continue to bounce around the $1300 level, an area that of course has been psychologically important more than once. However, there is a significant uptrend line underneath, so I think it is more than likely that we will find buyers eventually, but there are a lot of geopolitical concerns and of course the US dollar has been going back and forth due to the tariffs being slapped on the European Union, Canada, and Mexico by the United States. I think there is a lot of uncertainty right now, and although gold is sometimes considered to be a haven, the reality is that the US dollar continues to show signs of strength.

I think that if the market breaks above the $1308 level, the market should continue to go towards the $1325 level longer-term. Otherwise, we could go down to the previous uptrend line where there has been a significant amount of support. That should be found somewhere near the $1290 level, which of course is a large, round, number anyway. I think what we are going to see a lot of back-and-forth, so don’t get too excited about any particular move until we get a daily close outside of this range. A breakdown should send the market looking for the $1275 level, which is an area that has been important more than once in the past. I think that the volatility should continue, so I would keep my position size very small, and perhaps look to short-term bounces back and forth around the $1300 level as a pivot.

Gold Analysis Video 01.06.18