Gold Price Forecast – Gold markets very choppy on MondayGold markets initially rallied during the day on Monday but gave up most of the gains later on. It looks as if we will continue to bounce around between the $1185 level on the bottom, and the $1200 level on the top.
The Gold markets continue to be very choppy overall, and therefore it’s not a huge surprise that we struggled a bit during the trading session on Monday. I think we continue to go back and forth, and it’s likely that we will see quite a bit of noise overall. I do like buying short-term pullbacks, but if we were to break down below the $1185 level, then I think we go looking towards the $1175 level. From a shorter-term perspective, when I look at this market I also recognize that the five dollar levels continue to be important as well. In other words, short-term traders will continue to bounce back and forth between these large figures.
Longer-term, I love gold. I buy gold in its physical form quite often, recognizing that leverage can be difficult to hang onto. Overall, I think that the markets will eventually turn around but we need to see the US dollar fall apart first. The US dollar has been rather strong, and with the strengthening interest rate cycle from the Federal Reserve in a time of low rates around the world, we may be waiting a while before we see the US dollar helps gold. Overall, I think that the market will eventually find its footing, but in the short term you need to think about this market as being one that is traded off the 15 minute chart or something as such. If we were to break down below the $1175 level, I think we will break down to the $1100 level given enough time.