Gold Price Forecast – Gold markets go sideways on Monday
Gold markets went sideways during the trading session on Monday, as global markets continue to pay attention to the potential trade wars coming out between the United States and several other countries. Because of this, I think Gold doesn’t really know what to do yet as the risk appetite is all over the place. The $1275 level above continues to offer resistance, and of course the previous uptrend line will offer resistance as well. It is because of this that I believe we are essentially going to tread water in the short term. However, longer-term I think a lot of different things are at play.
If we break down below the $1260 level, it’s likely that we could reach towards the $1250 level. That’s an area that should be important based upon the round figure aspect, and previous action around that number. If we do rally from here, I think it will be very difficult to break out to the upside for a significant move until we get clarity on the US dollar, which of course has a major influence on what happens in the precious metals markets overall. I believe that the choppiness in this market will continue, and I think that the attitude in this market will probably remain the same. It is because of this that if I was going to place a trade, I would probably do so with physical gold as it takes the leverage out of the equation. Expect a lot of noise, but if you are a short-term trader, you could perhaps take advantage of the $15 range that we are currently stuck in.