Gold Price Forecast – Gold markets continue to levitateGold markets continue to levitate overall, showing signs of strength during the day on Monday. I think that the gold market continues to find strength due to the uncertainty around the world, and the “safety trade” that seems to be in effect.
Gold markets broke above the $1230 level, an area that has been resistance, and now it looks like we’re going to pull back to the $1230 level to find buyers. At this point, it’s very likely that we should continue to go higher, perhaps reaching towards $1250 level. Underneath, I see the $1220 level as being very supportive, so a break down below there would of course change a lot. That would probably coincide with strength in the US dollar, which of course does happen when people start to freak out although gold has enjoyed a bit of buoyancy due to the exact same issue.
Gold markets have benefited from a lot of the uncertainty around the world, and it looks as if we are going to continue to see that going forward. I think that the $1250 level above will be a bit resistive, and if we were to break above there, this market can really start to take off. The Gold markets have recently found a lot of support near the $1200 level, which was technically and structurally important. Now that we have found that the be an area where buyers are willing to get back involved, I think that it’s likely that we will eventually get value hunters here, so I would be willing to buy gold, but in small bits and pieces in order to build up a larger position. Shorting isn’t something that I’m interested in at the moment as we have seen such a huge move in the precious metals arena.