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Gold Price Forecast – Gold markets continue to struggle with strong greenback

By:
Christopher Lewis
Updated: Sep 1, 2018, 05:23 UTC

The Gold markets continue to struggle with a stronger than usual greenback as fear continues to be a major issue for the market. At this point, I believe that we are probably going to see a lot of volatility going forward, as trade deals become front and center.

Gold daily chart, September 03, 2018

The greenback continues to be the strongest currencies in the world overall, and that continues to weigh upon emerging markets. This in turn can cause a lot of gold selling as emerging markets tend to be much more sensitive to these moves and will often sell gold to prop up the local currency. Beyond that, gold is priced in US dollars, so as the US dollar flexes its muscles, it makes sense that we would continue to see gold struggle. In general, I believe that the market participants are now looking at the $1200 level as a target. However, if we were to turn around and break above the $1215 level, that could send Gold much higher. Gold markets are very jittery to say the least, and at this point I think you should probably look at the $1200 level as a bit of a fulcrum for price.

I anticipate seeing a lot of erratic moves in this general vicinity, but I have been buying little bits and pieces of physical gold because I recognize how cheap it is historically. However, as far as leverage is concerned, you should consider it toxic for trading this marketplace, because we are moving on far too many random headlines to feel comfortable taking any major stands in anything that’s remotely considered to be a risk appetite. With all this volatility, keep your position size small if you are trading the CFD market. I would stay completely out of the futures markets.

Gold Price Video 03.09.18

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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