Gold Price Forecast July 12, 2017, Technical Analysis

Gold markets were drifting slowly to the downside during the session on Tuesday when Federal Reserve member Harker suggested that perhaps inflation was a bit too soft for him to become triple raising rates. This obviously sends gold higher, but at the end of the day it is only one member, so perhaps this is going to be a blip on the radar than any type of major break out. Because of this, the volatility picked up, but I still think we are chopping around with a negative bias. A lot is going to ride on what Janet Yellen says in front of Congress during the session today, so pay more attention to her. If she sounds hawkish, this market will turn right back around and start selling off drastically. Because of this, I believe it’s difficult to trade this market with any long-term bias.

Longer-term downtrend

Unless of course Janet Yellen tells a completely different story during the session today, I suspect that the market will continue to press lower, perhaps reaching down towards the $1200 level. That’s an area that will be massively supportive, so pay attention to that. The market breaking below that level is a very negative sign, and should send this market much lower, perhaps reaching down to the $1000 level over the longer term. I would not only be a seller of gold below $1200, but I would be aggressively so. I don’t see gold recovering longer-term until the Federal Reserve decides to change its overall tune, which I don’t see it happening anytime soon. Because of this, I remain bearish, but I recognize that we could get a bit of volatility over the next several sessions. If we broke above the $1230 level, then it could be a longer-term change.

Price of Gold Video 12.7.17