Gold Price Forecast – Gold markets rally on Wednesday

Gold markets rally during the trading session on Wednesday as it was reported that the UK and Germany were possibly coming together a bit on the Brexit negotiations, and this of course in the EUR/USD pair in the GBP/USD pair higher. In other words, drove down the value of the US dollar which of course is good for gold overall. With that being the case, the market looks very likely to test the $1205 level. If we can get above that level, it could free the market to go to the $1210 level next. In the meantime though, I would expect a lot of volatility, and just as much selling pressure as buying, as the markets are very erratic in general. I would trade this market in five dollar ranges, going back and forth to keep your P&L safe. If we do break down below the $1200 level, I think somewhere near the 1196 level there should be some buying support.

Pay attention to the EUR/USD pair, it will drive where this pair goes because it is the largest indicator of US dollar strength in general. Ultimately, I think that the market will probably find plenty of selling above, all we need is some type of excuse. My suspicion is that headline will come out later casting doubt upon some of the positive headlines we got out of the Brexit during the day. Otherwise, gold could explode to the upside. I would point out that this was a relatively  muted reaction to that, much different than what we saw in the currency market.

Gold Price Forecast Video 06.09.18