Gold Price Forecast – Gold markets continue to slip

Gold markets are reacting to the US dollar strengthening around the board, and at this point I think that will continue to be the major driver of gold. More with the US dollar climbing based upon higher interest rates and of course the concerns with emerging markets, it makes sense that gold will struggle. Pay attention to the EUR/USD pair if you’re a Forex trader, because of that breaks down below the 1.15 level, it’s likely that the US dollar will strengthen yet again, driving gold to fresh, new lows. If we can turn around and recapture the $1205 level, at that point I would anticipate a move to $1210, followed by $1215.

I am a firm believer in gold longer-term, but that’s an investment. Much like the Silver markets, buying physical gold is a good longer-term investment, but trying to time the buying of gold in a leveraged instrument is a much more difficult situation. Because of this, I believe that very small positions in the CFD market or the futures markets should be used, depending on the size of your account. If you have the ability to trade with large size, then futures markets might be the way to go, but I would add slowly. I would not get overly aggressive because quite frankly it only takes some air and headline to drive the value of the dollar backup in this extraordinarily volatile timeframe that we find ourselves in. That being said, the hourly chart does look as if it is trying to cause a bit of a bounce.

Price of Gold Video 05.09.18