Gold Price Forecast – Gold markets benefit from soft US dollar

Gold markets rallied significantly during trading on Monday, as the US dollar lost a bit of strength.
Christopher Lewis
Gold daily chart, September 18, 2018

Gold markets rallied significantly during the trading session on Monday, gaining over 0.5% by the time the Americans went online. However, there is a lot of noise above, especially near the $1210 level, so I think that the rally will be somewhat short-lived. After all, there are more than enough reason to think that the US dollar could gain strength, if nothing else due to significant concern with emerging markets.

Trade war fears continue to be a major issue as well, which almost certainly looks likely to pick up a bit. I think that the Gold markets will continue to be very range bound, with the $1195 level underneath the be supportive, and the $1215 level above should be resistive. Overall, this is a market that I think should continue to see volatility, but I also recognize that we are more than likely going to move with the US dollar, as we have seen for some time now. I think at this point though, it’s probably easier to short this market at higher levels than anything else, because the move has been extended so rapidly during the day on Monday.

It’s very likely that we will see a return to lower levels, as I think there are so many issues out there that could scare people back into US treasuries, driving up the value of the US dollar, and therefore working against the value of precious metals in general. As I stated in my silver analysis, when I’m looking to buy precious metals, I do it in gold, and if I’m looking to sell precious metals, I do it in silver.

Gold Prices Video 18.09.18

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
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