Gold Price Forecast August 3, 2017, Technical Analysis

Gold markets initially dipped lower at the open on Wednesday, but found plenty of support near the $1263 level to turn around and show resiliency yet again. I believe that the market is going to try to reach the $1275 level above, and then extend to the $1300 level after that. The $1300 level should be rather resistive though, as it has been the top of consolidation for several months in the market. I think that short-term opportunity exists for people to pick up gold, but would be very quick to take profits once we got close to the $1300 handle. In fact, you could possibly see an opportunity to start selling gold again near that area. However, if we were to close above $1300 on the daily chart, that would signal a fresh, new high, and send this market to much higher levels over the longer term. In the meantime, I think that the consolidation should hold until it doesn’t.

Bullish short-term

I remain bullish short-term, so I look at these little dips as an opportunity to make money over the next couple of sessions. I would be surprised if we broke out quite yet, although the US dollar has given back most of the gains for the year, the reality is that inflation is not picking up, least not the way central banks measure them. If interest rates continue to drop in the bonds market, that will work against gold as well. Currently, I am bullish but I also am aware that $30 above current pricing, we could run into a lot of trouble.

Gold Price Forecast Video 03.8.17