Gold Price Forecast – Gold markets drift a bit lower on Monday
Gold markets of course are highly influenced by the US dollar, so keep that in mind before placing any types of trades. At this point, I think that the market probably looks at the $1220 level as massive support. At this point, I believe the Gold markets are a bit extended for the short term, but I would be willing to take a small position at $1220 as it has been somewhat reliable. The keyword here of course is going to be “small”, as Gold markets do tend to be a bit volatile.
If we were to break below the $1220 level, then I think that the market will probably go looking towards the $1210 level, followed by the much more significant $1200 level after that. Ultimately, this is a market that continues to struggle with momentum at the moment, but it’s obvious to me that we still have a certain amount of buying pressure underneath, perhaps due to global uncertainty, perhaps due to US dollar fluctuations. I think at this point it’s likely that we will continue to see participants look towards Gold as a way to express their value against global risk and of course the greenback.
If we were to break down below the $1200 level, that would be an extraordinarily negative sign, and that should send this market much lower. I believe the Gold is trying to reach the $1250 level over the longer-term, but it will be very noisy to say the least.