Gold rallies during the week, but finds trouble above the $1350 level

Gold markets rallied during the week, breaking above the $1350 level but failing to hang above there. By doing so, we ended up forming a bit of a shooting star looking candle, but more importantly, we have stayed within the overall consolidation area between the $1300 level and the $1350 level. Because of this, I suspect that short-term pullback should be buying opportunities, as eventually we should find enough momentum to break out to the upside. The $1375 level being cleared would of course open the door to the vital $1400 level, an area that I think opens the door to the $1800 level.

As we pull back, I think there should be plenty of reasons for buyers to get involved, and I believe that eventually a supportive candle will present itself that you can take advantage of. I would start out slowly though, because gold of course is going to react to trade war fears and headlines coming out of the United States and China. I believe that the market should continue to be very noisy, so I would start out slow, and then add as things go forward. A breakdown below the $1300 level could send this market down to the $1250 level, an area that has been supportive as well. I do believe the gold continues the upward trend overall, but it may take some work to get to the upside and extend to higher levels. Once we break out, the market should pick up sizable momentum.

Gold Analysis Video 16.04.18