Gold Price Forecast August 2, 2017, Technical Analysis

Gold markets initially went sideways on Tuesday, but then fell towards the $1262 level. We found plenty of support down there though, so we turned around to reach towards the $1275 level above. That’s an area that is massively resistive, but I think that the longer-term action in this market dictates that we will continue to go higher. Ultimately, I believe that a break above the $1275 level then clears the way for the market to test the $1300 level above, which is massively resistive due to the fact that it is the top of the longer-term consolidation area that the market has been stuck in for some time. I believe that buying dips should continue to be a reasonable trading strategy, as the US dollar continues to soften.

The Federal Reserve

The Federal Reserve continues to be in focus, and with the employment figures coming out on Friday, I suspect that this market will continue to be very interesting to say the least. If we continue to see the Federal Reserve look a bit more dovish than anticipated, it makes sense that the gold markets should rally as they are priced in the US dollar and of course gold is a bit of a hedge against weakness in the currency. The markets look likely to find buyers underneath, and I believe that the 1265 region continues to be an area where buyers would be interested. If we can somehow break above the $1300 level, that would be an extraordinarily bullish sign and could send gold screaming to the upside. However, and the next couple of days, the markets will be waiting for those employment numbers, although we do get the ADP numbers today, and that could get traders trying to front run the NFP announcement.

Price of Gold Video 02.8.17