Gold Price Forecast – Gold markets drift lower on WednesdayGold markets drifted slightly lower during the day on Wednesday, reaching towards the $1205 level. That’s an area that has been supportive recently, but I think that there is even more support below.
Gold markets have drifted slightly lower during the trading session on Wednesday, as we continue to bounce around the $1205 level. This is a market that is highly influenced by the US dollar so of course pay a lot of attention to that, using the EUR/USD pair as a de facto gauge of US dollar strength. If that market falls below the 1.15 level, it’s likely that gold markets will fall as well as it will take less US dollars to buy an ounce. Otherwise, if the EUR/USD pair turned around and rally significantly, that should lift gold prices as well.
Obviously there are a lot of different things that move this market, but that’s the simplest secondary indicator that I know of. Interest rates in the United States are looking to go higher, so it’s very likely that Gold will continue to face significant headwinds from time to time. Ultimately I believe that the market continues to go higher if we can get some type of US dollar weakness, something that hasn’t been easy to come by for any length of time as of late. The $1200 level would be very interesting for buying opportunities, but if we break down below there I think that we could also find buyers at the $1195 level after that. Short-term, I think you should continue to turn around and try to buy and sell every five dollars, as it is obviously an increment that a lot of traders are paying attention to currently. Recently though, we have certainly seen a lot of buying pressure overwhelm sellers.