Gold Price Forecast – Gold markets show a bit of softness waiting for central banks

The Gold markets drifted a little bit lower during the trading session on Wednesday, as we continue to see a little bit of negativity. However, pay attention to the US dollar more than anything else, and I think that the central bank tone from the United States will have a great influence on where we go next. Obviously, the US dollar strengthening is negative, and I also believe that the Federal Reserve seeming more stringent than anticipated could wreck gold. However, $1200 features a lot of support. If we break down below there, that would be a major turn of events. A break down below there could unwind this market down to the $1000 level.

As I’ve been saying for some time, if we were to drop down to the $1000 level, I would back up the truck and buy as much gold as I possibly could. That was a major break out several years ago, and there should be a ton of support for it there. However, the $1200 level is also very important, so at this point I’m hoping that gold drops towards that level so that I can pick it up for a longer-term move. Keep in mind that gold will be thrown around by the central banks in both the United States and England, so the next couple of days will be very dangerous. I believe looking for value on dips will probably continue to be the best way to play this market, but more from a longer-term standpoint. In other words, small positions in the CFD market probably makes the most sense.

Gold Price Video 02.08.18