Gold Price Forecast – Gold markets very choppy on Friday sessionGold markets were very choppy during the Friday session, as we continue to bounce around in the same area. The market has been very difficult to deal with as of late unless you are in a range bound trader.
Gold markets were very noisy during the day on Friday, as we continue to bounce around the $1210 level. I believe that the $1200 level underneath is a major barrier, not only structurally, but possibly from a psychological standpoint as well. I think that the buyers will return the closer we get to that level, and you could even point out a smaller range of trading using the $1215 level the top and the $1205 level and the bottom. You have to be a little bit more artistic with your trendlines, but at this point it would be close enough to point out what we’ve been looking at over the last couple of days.
The US dollar strengthened a bit during trading on Friday, which of course has put bearish pressure on gold by the end of the day. However, I think that the market is showing its natural proclivity to hang about this area and wait to see if we get some type of larger catalyst. After all, $1200 is crucial on the longer-term charts. The closer we get to $1200, the more willing I am to buy a bit of gold and see if it can take off to the upside. Otherwise, if we close down below there on a daily chart I would look for a move down to the $1140 level next, as it is the next major support barrier on the longer-term charts. Either way, I think we should get a large move soon.