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Christopher Lewis
Gold daily chart, June 18, 2018
Close-up View Of Shiny Gold Bars

Gold markets broke down drastically during the trading session on Friday, slicing through an uptrend line that has extended from late 2016. This is a major turn of events and could lead to much lower pricing. I believe that any rally at this point has to be looked at with suspicion, especially if the US dollar continues to show signs of strength overall. Right now, I think that the market will probably extend down to the $1250 level over the longer-term. In fact, I believe that the uptrend line will be a bit of a resistance barrier, so I think that it’s only a matter of time before the sellers will get aggressive.

I believe that overall, this will be greatly influenced by monetary flows in the Forex world, so pay attention to US treasuries. If just rates continue to drop, it’s likely that the US dollar will strengthen and therefore it’s likely that Gold will continue to sell off and a bit of a fear trade. Otherwise, if we could turn around to break above the uptrend line, that would be an immense show of strength and resiliency, something that I’m not expecting to see anytime soon, and it would of course change everything. I think that the market will continue to be very noisy, but I think selling the rallies will continue to pay going forward.

Gold Prices Video 18.06.18

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