Gold Price Forecast – Gold markets stabilize heading into the weekend

Gold markets have stabilized a bit during the day on Friday, gaining slightly as I record this. I think as we head into the weekend, people were covering short positions so that they don’t get exposed, but at the end of the day it also should be noted that the Gold markets are highly influenced by the US dollar, which of course looks to be softening against some of the other currencies such as the Euro and the Australian dollar. This might be a short-term phenomenon, this could be a longer-term one, nobody knows quite yet, but it makes sense to play it safe in the meantime.

I think that gold markets breaking below the $1200 level were of course a very ominous sign, so I would look at rallies as potential selling opportunities. This will be especially true if the US dollar does pick up steam again, which I think it will based upon some type of errant headline. After all, the turkey situation has not been solved by any stretch of the imagination, and even though the Chinese are coming to Washington later, nothing’s actually been solved. I think it will only take a couple of bad headlines to turn things right back around. Look at this as an opportunity to sell gold higher levels.

I do like physical gold, but that takes out the leverage situation. If you are trading CFD markets or futures, you are better off waiting for selling opportunities above.

Gold Prices Video 20.08.18