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Gold markets initially fell during Friday trading, but found enough support at the $1320 level. Ultimately, this market should continue to find buyers on dips, but the one thing that does concern me is that the weekly candle is a bit of a shooting star. I think that we continue to trade between $1300 on the bottom and $1350 on the top. I think as we are roughly in the middle of this range, it’s probably best to wait for short-term pullbacks to take advantage of any value play that shows itself. If we can break above the $1350 level, the market could go to the $1375 level.
I do believe longer-term the buyers will jump in and take advantage of this market, but I also recognize that it could be a bit noisy on the way up, and of course several things will be causing this market to move. For example, we have the Chinese trade war situation, and of course several other geopolitical concerns. I think the volatility is probably the one thing that you will be able to count on when it comes to this market, and ultimately that is how you have to play the market. If we were to break down below the $1300 level, although that would be a very negative sign, I think this should be plenty of support down to the $1250 level. I believe that this market will continue to be one that you can buy on dips, and the recent action has done nothing to change that opinion.
Gold Price Forecast Video 09.04.18
This article was originally posted on FX Empire