Gold Price Forecast September 12, 2017, Technical Analysis

Gold markets gapped lower at the open on Monday, as the flare up between North Korea and its neighbors has cooled off a bit. However, looks as if the $1300 level has offered support again, and I think that we will probably find buyers coming back into the market. I believe that the rally that we have seen in the US dollar is probably short-lived, and that the longer-term trend should continue. If we can reach towards the $1350 level, I think we will break out above there. Longer-term, I still believe that we are aiming for the $1400 level, so therefore I don’t have any interest in shorting gold as it won’t take much to get traders scared again, and reaching towards higher levels. The recent breakout that we have seen in the gold market is significant, and I think you should treat it as such. That doesn’t mean that we won’t get pullbacks, but those should end up being buying opportunities given enough time.

It will take very little for the gold markets to rally, and the first bit of saber rattling by North Korea or the United States would continue to go in favor of gold, as it is being used as a haven. Ultimately, the US dollar has been in a bit of a freefall, and I think that the gold market should continue to go higher. I think that the $1400 level will be massively resistive, but a break above there is a longer-term “buy-and-hold” trading signal. In fact, I have no interest in shorting this market until we break down below the $1300 level, which looks very unlikely currently as I look at the chart. Pulling back should continue to be buying opportunities, as there are too many reasons to think the gold will rally.

Gold Analysis Video 12.9.17