Gold Price Forecast August 1, 2017, Technical Analysis

Gold markets initially dipped on Monday but found enough support near the $1265 level to remain resilient. I believe that the gold markets will continue to find buyers as there is a lot of concern about the US dollar, and of course the political situation in Washington DC not being able to get anything done. The weakening US dollar also helps the stock markets, so it becomes a bit of a cyclical move. I believe the pullbacks continue to offer buying opportunities, as bonds pay almost nothing. After all, traders are starting to think that the Federal Reserve will be open to raise interest rates anytime soon, and that of course weighs upon the currency. It looks to me as if we are supported at the $1265 level and the short-term, and most certainly at the $1250 level.

Buying dips

I continue to buy dips in this market as a represent value and we have been consolidating longer term. The top of the consolidation area is at the $1300 level, and I think that will be the target. It may take quite a while to get there, but given enough time I believe that we will have the opportunity to reach towards that level. If we can break above there, that’s obviously and explosively bullish sign, but at this point I think that we are bit overstretched to think it’s going to happen right away. It will probably take several attempts as they typically take to get above a massive barrier like this, but in the meantime, I think that it makes a nice target from this level, and certainly offers more than enough profit to make the trade viable to be buying gold. I have no interest in shorting this market, unless of course we get below the $1245 level.

Gold Price Video 01.8.17