Gold Price Forecast August 8, 2017, Technical Analysis

Gold markets continue to grind sideways after the massive selloff on Friday. I believe that the market is essentially treading water above the 1255 handle, which probably has a poor going down to the 1250 level. I think that a bounce from here is going to run into significant trouble, going all the way to the 1270 handle. Rallies at this point are to be sold, on for signs of weakness as a US dollar strengthening of course works against the value of gold in general. If we do break down below the 1250 handle, I think that we will find yourselves going to the 1200 level rather quickly.

Selling short-term rallies

I’m a seller of short-term rallies on signs of weakness, as I believe that the market will continue to favor the US dollar, as Forex traders are readjusting their expectations of interest rate hikes. This works against the Pharaoh gold, so I think that we will probably begin to see quite a bit of bearish pressure. If we do break above the 1270 handle, I would expect the market to go to $1300, but that seems less likely after Friday’s action.

Gold Analysis Video 08.8.17