Gold Weekly Price Forecast – Gold markets drift slightly lower again during the week

The Gold markets continue to look very bearish, perhaps reaching down to the $1200 level underneath. That is a major support level, so I think that the buyers are probably just below, and I think that eventually we will see value hunters coming back into the marketplace to take advantage of this. However, I should also point out that the US dollar has been strong and quite frankly even though the GDP number was 4.1%, as opposed to the expected 4.2%, the US dollar is most certainly still strong. The GDP number reflects that perhaps the Federal Reserve is set to do several interest rate hikes into the end of the year, and I think that the currency will continue to show that dominance in the Forex market.

However, things turn around I believe that value hunters would come back and pick this market up. I do believe that longer-term value hunters are probably starting to buy physical gold, but I would also point out that if we break down below the $1200 level, we probably drop to the $1000 level over the longer-term. I think that this market continues to be very noisy, and I think that at this point it’s probably best to do this market with as little leverage is possible, either using CFDs or perhaps even physical gold as it will allow you to hang onto the position for longer. Keep in mind that most of the wick underneath the body of this candle was formed over the course of just a few hours on Friday.

Gold Technical Analysis Video 30.07.18