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Gold Price Forecast – Gold markets extraordinarily volatile on Friday

By:
Christopher Lewis
Updated: Jul 28, 2018, 05:17 UTC

Gold markets were very volatile during the day on Friday, initially breaking down rather significantly to reach down towards the $1218 level, before exploding to the upside after the GDP number in the United States miss by 0.1%. However, the US dollar is still a very strong currency, so I think it’s only a matter of time before the Gold markets will face some type of bearish pressure.

Gold daily chart, July 30, 2018

Gold markets were very difficult to trade on Friday, initially breaking down rather drastically, but then turning right back around to reach towards the $1225 level. That’s an area that should have a certain amount of resistance attached to it, but I think at this point what we are looking at is a marketplace that is difficult to buy, even though we have seen such a nice turnaround. There is a lot of resistance above, and quite frankly looking for signs of exhaustion will probably be the best way to look for trading opportunities in this market.

Even if we break higher, I think that the $1232 level is another sign of resistance and should be where we see sellers get involved in this market. I think that the $1200 level underneath is massive support, and I feel that it is only a matter time before the buyers would come in for a longer-term move at that level. If we were to break down below the $1200 level, that could have this market unwinding rather drastically, perhaps reaching as low as $1000 given enough time. The volatility is going to continue to be a major issue, as the market is being kicked around by larger funds right now. That being said, I’m looking for a selling opportunity but I would be very cautious about when I put money to work.

Gold Prices Video 30.07.18

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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