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Gold Weekly Price Forecast – Gold markets fall again

By:
Christopher Lewis
Updated: Sep 1, 2018, 05:26 UTC

Gold markets continue to look very soft, but we are approaching a major support level in the $1200 level. At this point, it’s a bit difficult to decide where we are going next, but I think if we can break above the $1215 level, we may get a nice snapback. Otherwise, it’s all about the US dollar.

Gold weekly chart, September 03, 2018

We have lost over $100 an ounce since the beginning of summer, and there’s no signs of it letting out quite yet. However, if we can break above the $1215 level, I think we could get a snapback rally to the $1250 level. As you can see, I have an ellipse at the bottom of the trend line back in January 2017, so the question is whether or not that level holds? It’s possible that it does, but we simply must see the US dollar stop gaining so much ground against the other currencies globally. Right now, it has been relentless and there’s no reason to think it’s going to change in the short term. Because of this, we could break down to a fresh low again. I believe that a fresh new low would send this market towards the $1100 level, and then possibly even the $1000 level. However, if we get that rally, we could get a nice buying opportunity, it leads to the $1250 level.

Make no mistake about it, this is all about the US dollar and its strength. The US dollar has been surging for some time, and that drives down the value of all precious metals. Gold is especially sensitive as it is one of the first places that traders will go to sell if the greenback rises.

Price of Gold Video 03.09.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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