Gold Price Forecast – Gold markets recover after initially falling on Monday

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Updated: Jul 31, 2018, 04:49 UTC

Gold markets have found a bit of support near the $1218 level during the day on Monday and bounced to recover the initial losses. I think that we are in a significant consolidation area, at least in the short term. I believe that if we break down from here, there will be even more conviction to the upside closer to the $1200 range.

I believe the Gold markets will continue to be very noisy over the next several days, because we have several central banks speaking, and of course the jobs number on Friday. This of course has a major influence on the US dollar, which by extension has a major influence on the gold market. I do like Gold longer-term, but I also recognize that we need to have a bit of base building first. If we can get that, then I think the market probably goes to the $1250 level.

In the short term, I believe that the $1235 level is going to offer a bit of resistance, so my plan for the next several days is to trade back and forth between $1215 on the bottom, and $1235 on the top. That gives us a $20 range to play with, which makes a lot of sense when we have the jobs number coming out later in the week, that we would have a serious lack of convention in the market. Overall, I believe that the market has been oversold for some time, but this basing pattern can take a while to form as well. I believe there are plenty of opportunities to buy gold on dips, and I also believe that longer-term traders and physical traders are starting to pick up a bit of the metal because it is cheap.

Gold Analysis Video 31.07.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.