Gold Prices Forecast May 16, 2017, Technical Analysis

Gold markets have rallied a bit during the day on Monday, reaching the $1235 level. A break above the highs during the day should send this market looking towards the $1250 level above there, and of course I think that the hourly moving averages crossing just below will continue to encourage buyers. Ultimately though, gold markets tend to react to the geopolitical risks around the world, which quite frankly I believe that markets are trying to ignore as much as possible. However, the North Koreans continue to be a thorn in the side of the rest of the geopolitical players, so headlines could continue to cause bits of noise.

Buying pullbacks

I believe in buying pullbacks in this market, as the uptrend line on the longer-term charts continue to hold for value. I believe that the market will eventually try to reach towards the $1250 level, and then eventually the $1300 level given enough time. I don’t have any interest in selling, least not until we break down below the $1215 level, something that doesn’t look very likely over the course of the next couple of sessions. If we do breakdown below there, things suddenly look very dark. A breakdown below there would almost undoubtedly send this market looking for $1200, and then perhaps a move even lower than that. As long as there is global uncertainty though, I believe that there is a bit of a built-in bid when it comes to gold as it is seen as a safety trade in times of uncertainty. No matter what happens, I think one thing you can count on is a lot of choppiness and volatility, so building positions in small increments will probably be the best way to deal with this market.

Gold Price Video 16.5.17