Yahoo Finance Gold Price Forecast – Gold markets continue to grind sideways on Tuesday with slight upward tilt
Gold markets when sideways during the day on Tuesday, which is something that is not overly surprising, considering that we had rallied so strongly during the previous week. I think that the $1250 level above is massive resistance, so I don’t know that we can break above there. If we do approach that level, I think it would take another catalyst to continue going higher. Pullbacks at this point should continue to find buyers underneath, and I think that the $1220 level is an excellent area to look for support.
One thing that I can say about this market is that we have gone sideways overall after a massive rally, and that is a good sign as it looks likely to make traders much more comfortable at these higher levels instead of the usual pullback that you would get after a surge higher. The longer we sit sideways, the more likely we are to break out to the upside, so this is actually a very good sign for the buyers. It shows that many of the buyers have simply not left the market and they are perfectly comfortable holding onto Gold at this point.
If the US dollar starts to skyrocket in value again, that could drive down the value of gold, unless it is a bit of a safety trade, then we could see Gold markets rally right along with the US dollar, something that does happen occasionally.
Gold Technical Analysis Video 17.10.18
This article was originally posted on FX Empire
