Gold Price Forecast – Gold markets rally early on Wednesday

Gold markets initially tried to rally during the trading session on Wednesday, reaching towards the $1208 level before pulling back a bit. As I record this, we are still sitting above the vital $1200 level, so things seem positive, but if we were to break down below there, the market could unwind rather quickly. It’s very cautious trading at this point, and keep in mind that the US dollar will have its influence. The market breaking below the $1195 level would be very negative, and perhaps reaching down towards the $1190 level, and then eventually the $1180 level after that.

Gold markets of course are reacting to the currency situation around the world, which of course is becoming less stable each day. At this point though, I think that gold is trying to make a case for forming a bottom. I expect a lot of noise in this market plays, so should be very cautious about levering up a position. The physical gold markets will also be a way to play this market, but ultimately this is a situation that is going to be dangerous to say the least.

If we break above the $1208 level, the market is going to continue to reach towards the $1225 level. That’s an area that has been support and resistance previously, and with that being the case I am cautious about gold and have been buying it in physical form only. If we get a break down though, we could see an acceleration of selling and perhaps a move much lower.

Gold Price Video 23.08.18