Gold Price Forecast – Gold markets rally as US dollar fallsThe US dollar fell during trading on Thursday, which of course helped precious metals markets in general. The Gold markets have rallied rather significantly to break above the opening price after initially pulling back. However, I see a lot of resistance just above.
Gold markets initially fell during the trading session on Thursday, but then turned around near the $1205 level, aided by the US dollar falling in general. Markets continue to pay attention to several things at once, as there are fears about the trade war, questions about whether the Federal Reserve will be able to raise interest rates in that environment, and then of course a lot of fear in the emerging markets. This has made the precious metals sector very difficult to trade at times, if you are looking at short-term charts. However, all one has to do is zoom out to the longer-term charts and recognize that we are in a major downtrend. This isn’t to say the gold can’t rally, most certainly can and it has. However there are levels where we see a lot of resistance previously. This is seen just above at the $1215 level, which should be a bit of a challenge to get above. That’s not to say that we can’t break above there, but we need some help from the US dollar.
Otherwise, we will probably pull back to the $1210 level from that level, and then possibly back to the $1205 level. I think that this choppiness will probably continue going forward, as the market participants have a barrage of headlines on an almost daily scenario to deal with. I would keep my position small regardless, because quite frankly the volatility should continue to be a major issue.