Gold markets went sideways initially during the session on Friday, as it used the $1257 level for support. We ended up shooting higher during the day as the US dollar fell, and of course the inverse relationship with gold is well known. We reach towards the $1265 level, and it looks as if we are ready to continue to go higher. Longer-term, I believe that the market will go looking for the $1300 level again, which is the top of the overall consolidation area. The market should be a nice buying opportunity every time we dip, as there seems to be more than enough support and of course with the Federal Reserve looking very dovish, it makes sense that we should continue to see buyers jumping in this market.
Buying dips
I continue to buy short-term debts, as they offer value in a market that seems to be very bullish, least in the short term. I don’t have any interest in shorting, least not until we break down below the $1250 level, something that doesn’t look very likely on the hourly chart. With this, I believe that gold continues to be in favor, least the next couple of weeks, and therefore we should continue to buy on the dips as its offering a nice continuation of the overall consolidation. We have clearly tilted to the bullish side again, so I believe that gold offers plenty of opportunity going forward.
Gold Prices Video 31.7.17
This article was originally posted on FX Empire