Gold Price Forecast – Gold markets rally to start the week

Gold markets have rallied quite nicely to start the week on Monday, reaching towards the $1265 level. I believe that dips will continue to be bought, and that the $1275 level above is the longer-term target. I think that you should keep an eye on the Forex markets, as the US dollar has been falling during most of the day. That generally helps gold, certainly a correlation that we are seeing on Monday. Currently, it looks as if the $1255 level is offering a bit of support that extends down to the $1250 level, as gold has made a nice correction after consolidating in that region. I still believe that the $1275 level above might be a bit difficult to overcome though, so expect a lot of choppiness.

It’s in markets like these that I anticipate using CFD markets or even futures markets to take advantage of this type of volatility as unless you are a longer-term trader, it doesn’t make much sense buying physical metal if it’s going to go back and forth in the short range. In other words, there’s no urgency, so if you want to buy physical gold for your retirement account then fine, otherwise the movements are going to be far too quick to be bothered with that. I believe that we will continue to see bullish pressure in the short term, but it’s going to take something rather stringent to break above the $1275 level and continue the move to the $1300 level.

Gold Analysis Video 10.07.18