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Gold Price Forecast – Gold markets continue to show weakness on Thursday

By:
Christopher Lewis
Updated: Jun 22, 2018, 05:15 UTC

Gold markets continue to drift lower, as Thursday saw more selling. The market breaking below the $1275 level is of course a negative turn of events, and it means that we will probably go looking towards the $1250 level next. As I record this video, we are starting to get a bit of a bounce, but that’s probably short-term at best.

Gold daily chart, June 22, 2018

Gold markets continue to look soft, as demand for US dollars seems to be increasing. I think that the $1275 level has been important in the past, so now that we have broken down below there, I think that the market could open up towards the $1250 level. That doesn’t mean we get there in one shot obviously, and therefore these short-term rally should be selling opportunities. In fact, I expect to see a lot of resistance extending to the $1285 level above, so therefore I would be a seller of exhaustive candles in the short term.

For those of you who have followed me at FX Empire, you know that longer-term I do like the idea of gold as an investment. However, trading is a completely different animal, and therefore you should treat it completely different. Short-term buying opportunities can present themselves, just as a longer-term selling opportunities could. At this point, it makes sense that the $1250 level would be targeted, and I would anticipate to see quite a bit of support in that area. You can see that I have left the longer-term uptrend line on the chart, and therefore I break above that level would attract my attention.

I believe that the summer will feature a strengthening US dollar, so that should continue to plague Gold markets overall. If you’re a longer-term investor though, picking up physical gold at these lower levels could work out quite nicely.

Gold Price Video 22.06.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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