Gold Price Forecast – Gold markets fall hard to kick off weekGold markets fell rather hard to kick off the week, dropping down to the $1187 level during the early US trading. However, we have seen a little bit of resiliency here and on the hourly chart and inverted hammer was just broken, giving is perhaps a bit of a lifeline.
Gold markets fell hard to kick off the week during the early hours in the United States, crashing into the $1187 level. There is a significant amount of support at the $1185 level, so I think it is very likely that we will continue to see a lot of fight in the market around present levels. Ultimately, I believe that we will see a significant attempt to break down below here and of course this will be driven more than likely upon the US dollar strength, especially against some emerging market currencies. As emerging markets have crumbled a bit, we have seen the Gold markets suffer as well. Ultimately, I think that selling the rallies continues to be the way forward, but I also recognize that there is a certain amount of resiliency just below, so there’s no point in trying to press the issue. Quite frankly, I think that it is only a matter time before the buyers come back in, but we should also see selling closer to the $1200 level.
If you have the ability, follow the US Dollar Index, if not you can follow the EUR/USD pair to get a gauge on US dollar strengthen overall, and recognize that as the US dollar strengthens, Gold will typically fall. In general, I am bearish for gold from the short-term standpoint but I also recognize that we are looking at a potential longer-term buying opportunity relatively soon.