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Gold markets when sideways after initially falling during the day on Monday, breaking below the $1300 level. There is a major uptrend line underneath that should continue to keep the market somewhat afloat, and I do believe that eventually gold rallies based upon geopolitical concerns. However, I would not have much in the way of leverage put in the marketplace as there are so many competing factors, not the least of which is interest rates climbing in the United States. That of course will continue to put a lot of bullish pressure on the US dollar, and bearish pressure on gold, but at the same time we have a lot of geopolitical concern around the world, and that of course can put bullish pressure on gold.
To simplify your trading, think of it as a “by on the dips” situation if we can stay above the uptrend line, or perhaps a “reset” if we break down below the trendline. That could send the market down to the $1275 level underneath, which has been important more than once. The market has recently made a “higher high” on the hourly chart, and I think that we will continue to go much higher. The $1325 level above will be a target, and if we can break above there I think that the market could continue to go much higher, with the $1350 level being the next major target that we will reach towards. Longer-term, I do believe that we break out and go much higher, but we could be talking about weeks if not months.
Gold Prices Video 29.05.18
This article was originally posted on FX Empire