Gold Price Forecast – Gold markets fall hard against US strength

Gold markets fell during the trading session on Friday, reaching down towards the psychologically significant $1200 level, where we have seen a short bounce. At this point, I think that the market will continue to bounce around significantly, and when we look at the longer-term candle stick from the weekly chart, you can see that we are a bit “confused.” I think that is going to continue to be the case, and you simply must pay attention to the currency markets, because I believe that the US dollar continues to be the main driver of gold. If it rallies, Gold will fall, and of course vice versa.

It doesn’t hurt that the $1200 level is a large come around, psychologically significant number, in the scene of a major rally a couple days ago. If we were to break down below the $1198 level, I think that we could break down somewhat significantly because it would be a massive complex “M pattern.” Otherwise, I would anticipate that a move above the $1205 level would probably have the market returning back to the $1210 level after that. I believe that the market should continue to be very choppy and difficult, but ultimately it is somewhat range bound in the great thing about gold is that it’s so technically driven. Every five dollars or so you see market participants buy and sell, so short-term traders love this market. Pay attention to the EUR/USD pair, it is my favorite correlating market indicator as it is the largest currency pair in the world, which of course shows overall US dollar strength.

Gold Price Forecast Video 17.09.18