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Gold markets went sideways initially during the Friday session, as we continue to see a lot of volatility. Gold markets of course are driven by what’s going on in the US dollar in general, as the interest rates in America have been climbing. That of course drives the value the greenback higher, and thereby puts a lot of bearish pressure on gold. The market looks likely to continue to respect the $1300 level as support, and the $1350 level as resistance. Expect a lot of choppiness in general, as the market is continuing to deal with the bond markets and the noise coming from there. I think the geopolitical tensions of course should continue to put a bit of a bottom in this market, and when I look at the longer-term charts we are too far from major support. The $1300 level also coincide quite nicely with an uptrend line that goes back several months, so I am bullish of gold, but I also recognize that you need to be cautious, and perhaps look for short-term pullbacks to take advantage of with little bits and pieces. Add to your position every time we clear one of the recent highs, as it shows that we are ready to go higher of the longer term.
I believe that the $1350 level will take a significant amount of momentum to break above that resistance, so I don’t things can happen in the short term, but certainly we can build up a larger position in the meantime. Ultimately, the market would break towards the $1400 level, and a move above there is a sign that we could go as high as $1800.
Gold Prices Video 30.04.18
This article was originally posted on FX Empire