Gold markets rally initially, but roll over on Tuesday

Gold markets rallied a bit during the trading session on Tuesday, reaching towards the $1296 level before falling again. The market has a significant amount of resistance in the psychologically important $1300 level, and of course the previous uptrend line that had been so important for the buyers. I think that if we can break above the $1305 level, then we could go much higher, perhaps reaching towards the $1325 level. Otherwise, I think that we will probably roll over again and break down towards the $1275 level, which makes sense to me considering how strong the US dollar has been.

With interest rates in the United States going higher, that tends to put downward pressure on gold, as it not only lifts the greenback, it also makes the idea of collecting interest on bonds to be much preferred to a non-interest-bearing asset such as gold. There are problems on the horizon though, and that could send Gold markets much higher. I believe that the market will continue to respect the $1275 level, so that’s the initial target, and I would expect some support to come back at that point. Overall, I anticipate that there are a lot of concerns around the world that could shake the markets, and that could put a lot of pressure to the upside on gold as it is a bit of a safe haven. Overall though, I believe that we continue to see a lot of choppiness in this market, so keep your position size either small, or long-term based.

Gold Outlook Video 23.05.18