Gold Price forecast for the week of August 7, 2017, Technical Analysis

Gold markets initially tried to rally during the week, testing the $1275 level as resistance. We turned around to fall significantly, reaching down towards the $1250 level on Friday as the US jobs number came out much stronger than anticipated. Looking at this chart, if we break down below the $1250 level, I feel that the market will probably continue to break down as it would be a “lower high” on the weekly chart. The strong jobs number in the United States suggests that perhaps the Federal Reserve may be on track to continue raising interest rates. If that’s the case, gold will suffer.

No sign of inflation

A lot of traders out there are harking on the fact that there is almost no sign of inflation, and if that’s the case gold will roll over. Ultimately, the $1200 level underneath should be massively supportive. I don’t know if we break down below there, but we could go that low. Alternately, if we bounce from the $1250 level, the market could go looking for the $1275 level, but it’s not as we break above there that I think we can try at $1300. After Friday, I believe that the sellers may have something to hang their hat sign, so we could see a bit of weakness going forward. We continue to bounce around between the $1200 level on the bottom and the $1300 level the top in the meantime, but the fact that we are looking extraordinarily weak on Friday puts a lot of things in the Tao. Pay close attention to the 2 levels that I mentioned, as they will give you an idea as to where we go next. Small positions may be necessary to protect yourself.

Gold Technical Analysis Video 07.8.17