Gold Price Forecast – sideways action for Wednesday session

Gold markets have gone sideways in general, dancing around the $1275 level. That’s an area that of course is important, based upon previous action. We had recently have broken down below a trend line, so that of course was a negative sign, but at the end of the day it does not look like we are facing some type of meltdown. I think at this point, it’s simply a function of the strengthening US dollar, something that we could see for the better part of the summer. However, I recognize that if we were to break above the $1283 level, the market is very likely to go looking towards the $1300 level again.

If trade tensions continue to increase, then there is the possibility that gold will pick up a bid from those looking for safety, but at the same time it typically will strengthen the US dollar overall. If that happens, you could get bearish pressure at the same time. As you can see, last Thursday as the Euro fell hard, and by extension the US dollar accelerated, Gold markets took the brunt of the selloff. At this point, I think it’s a range bound market that you should probably steer clear of, at least for larger positions. Longer-term I do believe that gold rallies, but clearly we have a lot of things to work through in the meantime. If we break down to a fresh, new low, I expect to see significant support below at the $1250 level.

Gold Price Video 21.06.18