Gold markets rally towards resistance on Wednesday

Gold markets pulled back a bit initially during the day on Wednesday but found enough support to turn around and rally towards the $1300 level. That’s an area that is very attractive to market participants, and I think it is essentially “fair value.” Short-term pullbacks should be buying opportunities, especially if we can stay above the uptrend line that we had formed previously. I think that the $1308 level above is a major resistance, and if we can break above there then the gold market should go towards the $1325 level. That’s an area that has been very important in the past, and I think that the buyers will continue to jump into this market on dips if we do make a move towards that level.

Ultimately, if we break down below the uptrend line underneath, the market could probably break down to the $1275 level. That’s an area that should be important as well, so I think that it’s more likely that we go higher rather than lower, but overall I think the one thing that you can count on is volatility. There are a lot of geopolitical concerns out there, not the least of which would be North Korea, Syria, and of course any potential trade war that could come out of the United States, China, European Union, perhaps even other countries. That could have people running to gold for a bit of safety and perhaps cover. In general, this is a market that I think will continue to be very noisy, but you need to cautious and hesitant to jump in with both feet. I favor the upside, but gradually and casually.

Gold Price Forecast Video 07.06.18