At this point, I believe that the gold markets have a bit of a “floor” at the $1300 level, which had previously been very resistant. I believe that a bounce in that area could perhaps reach towards the upside and eventually build up the momentum necessary to continue the longer-term uptrend. Remember, gold is very volatile, and I think that you should pay attention to the US dollar in the meantime. The US dollar of course has a massive influence on what happens with the gold markets, as the 2 tend to move in the opposite direction, although not exclusively so.
The fact that we rolled over on the hourly candle at the $1325 level, I think a break above the top of the candle is a sign that fresh money will come piling into the marketplace. I like the idea of buying gold longer-term, and adding slowly, to build up a larger position that I think could be built up over the next couple of years. If we were to break down below the $1300 level, that could change things, least in the short term. I still believe that longer-term the buyers will return but if we break down below that vital level, that shows that we are not quite ready to go to the upside in any significant manner. I look at these dips as value in a market that continues to be very value-oriented, but choppy as well. Add slowly, that’s the easiest way to go.
Gold Price Forecast Video 11.01.18
This article was originally posted on FX Empire
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