Gold Price Forecast – Gold markets rally significantly as dollar falls

Gold markets rallied significantly during the trading session on Tuesday, breaking above the $1250 level, a psychologically important figure. The question is whether we can hold these gains? I believe that the $1255 level above is the top of the resistance in this general zone, and if we can clear that level it’s likely that we could continue to see a bit of a recovery in the gold market. However, the first signs of trouble will send traders into this market shorting gold overall. I believe at this point, it’s more than likely going to be an opportunity to sell at higher levels, and it looks as if we are heading down towards the $1200 level longer term.

The rally on Tuesday has been rather impressive, but I would also point out that with the Americans going away for Independence Day celebrations today, it’s possible that we also have a little bit of short covering going on in America. Longer-term, the trend is most certainly negative, as we had broken down below a major downtrend line couple of weeks ago, and it looks as if this could offer an opportunity to short gold, but you need to be patient and wait for some type of rollover. If we were to break above the $1255 level, then I believe we will “reset” near the $1275 level. A break above that level has the market testing the $1300 level, and probably changing the attitude of the markets in general. I believe that there is a ton of support down to $1200, and I think the market will eventually go looking towards that level to test it.

Price of Gold Video 04.07.18