Gold markets initially tried to rally during the day after the jobs number came out stronger than anticipated, but then turned around to fall through the floor again. Now that we are below the $1220 level, and even the $1215 level, looks as if the gold markets will continue to fall. With interest rates set to go higher in the United States and other central bank’s around the world, this will of course continue to weigh upon the value of gold in general. I believe that the market is going to reach towards the $1200 level underneath, where it will find a certain amount of support. However, if we break down below there, the market should then continue to go to the $1000 level longer term.
Selling rallies
I believe that selling rallies will continue to be the best way to deal with the gold markets, especially with the $1230 level looking so resistive. As soon as we get some type of exhaustive candle, it’s time to start selling yet again. I believe that a breakdown below the $1200 level is not only a negative sign, but we should pylon into the short positions. I have no interest in buying gold, unless of course there is some type of major geopolitical issue, such as North Korea flaring up, but quite frankly I think and less something like that happens, is very likely that strength will be sold going forward as interest rates offer a safer return in the bond markets and other financial instruments. While there is a place for gold in everyone’s portfolio, I don’t think buying in this environment is very prudent, but I do recognize that the $1000 level below is a massive area on the multi-year charts. Selling seems to be the only thing to do.
Gold Prices Video 10.7.17
This article was originally posted on FX Empire