Gold Price Forecast – Gold forming possible double bottom

Gold markets fell initially during the day on Monday, bounced again, then fell again, only to bounce later in the day. In other words, we have a lot of volatility in the market. As you can see on the chart, I have two areas marked that could be forming a bit of a double bottom.
Christopher Lewis
Gold daily chart, September 11, 2018

Gold markets of course are very sensitive to the fate of the US dollar, which is getting sold off during trading on Monday as it has been stated by the EU official we may be within two months of the Brexit negotiated deal. If that’s the case, it would be very good for the Euro, and even better for the British pound. In other words, it should lead to more US dollar selling. However, we have the concern over emerging markets, which has kept the dollar elevated. All of this noise is contributing to a very choppy and difficult gold market.

Longer-term, I believe that the US dollar will continue its downward trajectory, but right now we obviously are doing that. So with that in mind, I like buying physical gold occasionally, as well as silver. But as far as leveraged products are concerned that’s an entirely different scenario. I think that the $1205 level and the $1210 level both could offer significant resistance. It now appears that the $1197 area is offering significant support. I think short-term scalping back and forth will probably be what this market continues to offer. I anticipate that we will go looking towards the $1205 level in the short term, but whether we can hang onto that movie is a completely different question. If we were to break down below the $1195 level, that could lead to even bigger selling as it would break the bottom of what could be the double bottom.

Gold Analysis Video 11.09.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US