Gold Price Forecast – Gold markets find support after fall
Gold fell initially to open the day on Tuesday, reaching down to the psychologically important $1250 level. That’s an area that has been important more than once, and of course has a certain amount of psychological importance to it. If we can break above the $1260 level, at that point I think that the market will be ready to go much higher.
Gold markets initially fell during the trading session on Tuesday, reaching down to the $1250 level, an area that has been important several times. I believe that the market will eventually find buyers to push higher, but I would also point out that we had recently broke down below a significant uptrend line. That being said, I’m not as confident about gold in the short term as I am the longer-term. I do believe that longer-term we will go much higher, but right now it’s likely that we will continue to see a lot of volatility. This makes sense, because the Forex markets are all over the place, and of course the US dollar has been a major driver of where gold goes.
If we do break down below the lows of the day, then I think we go looking towards $1240 level, and could go as low as the $1200 level underneath, which I think is massive support. Right now though, it looks like we are trying to build some type of base, so it might take some time to eventually get a definable trend. Currently, there are so many different moving pieces with global risk appetite that I think Gold will continue to be a short-term traders market overall, with about every $10 offering support and resistance, setting up a nice opportunity for range bound scalpers to get involved.
