Gold Weekly Price Forecast – Gold markets however above major support

Gold markets fell a bit during the week, but overall have been hovering in general. The $1200 level has offered a lot of support and interest lately, so having said that it’s likely that the market will continue to find volatility in this area. The $1175 level has been supportive in the past as I have circled on the chart, and of course there has been a gap here previously. This is why the market breaking down through here would be so catastrophic. At this point, I think precious metals are due for a bounce, but the bounce is probably just that, a small bounce. I don’t feel comfortable buying precious metals through a leveraged instrument anytime soon, but I have been buying them in little bits and pieces physically over the last several weeks.

If we did break down below the $1150 level, the market will probably go looking towards the $1000 level longer-term. Pay attention to the US dollar, it will be the driving factor for precious metals. As long as we have trade tensions and major issues in the emerging markets, especially emerging currencies such as the Turkish lira, the Argentine peso, and several others, it puts national upward pressure on the US dollar. That upward pressure continues to put downward pressure on gold. Eventually, things will calm down but right now it doesn’t look like we are ready to see that happen yet. Look at this potential bounce as an opportunity to sell, but I also look at these low levels as an opportunity to pick up physical coins and bars.

Gold Technical Analysis Video 10.09.18