Gold Price Forecast – Gold markets fall after initial strengthGold markets fell during the day on Tuesday after initially rallying, as we continue to see a lot of concern around the world due to trade tariffs being levied against each other between the Chinese and Americans.
Gold markets fell after initially trying to rally during the day on Tuesday as we continue to see a lot of volatility in the currency and equity markets. This is a market that is highly sensitive to the US dollar, which has been going back and forth, but with overall strength for some time. I believe that participants will continue to be very erratic, so I do not look at this as a long-term market. From a technical analysis standpoint, it’s likely that every five dollars we will continue to see both buyers and sellers jumping into push the market around.
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Above, I see the $1210 level to be resistive, just as I see the $1200 level being supportive. Essentially, the $1205 level is “fair value” at the moment, as it is also a scene of a lot of volume as well. At this point, I think the market continues to be very difficult to hang onto, as we have so many various things that could cause both fear and greed in the marketplace as trade tariffs will continue to push headlines around, and of course the currency markets, which by extension will push the precious metals markets. I believe in buying gold with the US dollar falls, and shorting Silver when it rallies. However, if you find yourself trading only gold, be aware of the boundaries that I mentioned above as a should continue to be important. I think a lot of precious metals traders are in a “wait-and-see” mode when it comes to tariffs.