Yahoo Finance Gold Price Forecast – Gold markets get relief on Monday
By all accounts, gold is in a downtrend. We reached close to the $1195 level but rolled over just a bit. The $1190 level underneath should be supportive, but I think we will probably break down below there. Pay attention to the US dollar because it’s essentially what is driving Gold at this point, and of course the emerging market currency crisis is not helping as most emerging economies fight a currency devaluation by selling gold to prop them up. When we look back at the Asian Contagion in 97, gold sold off while the US dollar rallied, meaning that it was not considered a safe haven at that point. I think that’s what we are seeing here.
The alternate scenario of course is that we do break out to the upside, but we need to clear the $1210 level to start buying at this point, and even then it’s probably somewhat limited to the $1225 level. Clearing that would be a reversal of the overall negativity, so I think short-term traders are going to continue to short this market on rallies. However, I think longer-term traders are looking at these lower prices and relishing the idea of buying physical gold. I believe that the $1000 level underneath is the “basement” as far as this market is concerned. I believe that some type of rally is coming, but not in the short term. This is more of a longer-term and investment type of thought process.
Gold Analysis Video 21.08.18
This article was originally posted on FX Empire
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