Gold markets rallied a bit during the trading session on Tuesday, reaching towards $1250 level, an area of major resistance. If we can break above that level, it is likely that we will continue to go much higher, perhaps towards the $1400 level based upon the longer-term charts, meaning that we would go back to the overall consolidation that we had been in for so long.
Gold Price Predictions Video 05.12.18
Overall, I think that the Gold markets will be very interesting to watch as it gives us an idea of what risk appetite is doing around the world. I believe that we are probably going to see the US dollar strengthen overall, and if that’s going to be the case, that should cause a bit of trouble in the gold market. However, it is what it is, so if we can break above the $1250 level, then a longer-term move would be in order. If we break down, I think that moving below the $1200 level offers an opportunity for gold to break down rather significantly, possibly down as low as $1000 based upon longer-term charts.
Pay attention to the US dollar, because it does give you an idea as to where we are going to go in commodities markets overall, so I would suspect that it’s only a matter of time before the currency markets will have their say when it comes to gold as well. I believe that the $1250 level will be a formidable barrier overall, so pay attention and wait for a daily close to give you an idea as to where to go.