Gold Weekly Price Forecast – Gold markets show signs of stability for the week

Gold markets when sideways during the week again, as we continue to see a lot of support underneath. The $1200 level seems to be a bit of a magnet for price, and therefore I think it’s only a matter time before we could rally at this point. The US dollar needs to calm down and of course though, so I am using the $1215 level as a barrier that being broken to the upside should send more longer-term Gold buyers into the market. Alternately, if we make a fresh, new low then we could unwind to the $1100 level.

Currently, market participants know that the Federal Reserve is likely to continue hiking rates, but I also realize that there are a lot of other situations around the world that could have people looking for safety in the precious metals market. Emerging markets are getting hammered by US dollar strength, just as gold is, so I think quite frankly that’s probably the bridge to higher pricing of precious metals, the US dollar to drop a bit. If we were to break above the $1215 level, then I think the next target would be the $1250 level, which of course is a round number and an area that has been support and resistance.

The alternate scenario is that we make a fresh new low but I think we would need to see the US dollar really take off against other currencies such as the Euro and the British pound to push this market lower.

Gold Technical Analysis Video 08.10.18