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Gold markets have fallen a bit during the trading session on Thursday, reaching down towards the $1285 level. We have bounced a bit the show signs of life though, and it looks as if we are consolidating in general. The market has plenty of resistance above at the $1300 level, which was a previous support level for the markets. We also have a previous uptrend line that slices to that area, so certainly there is going to be a lot of resistance and that general vicinity. If we can break above the $1300 level on a daily close, then I think the market turns around and continues to grind towards the $1225 level.
Ultimately, if we break down below the $1284 level, the market will drop to the $1280 level, followed by the $1275 level as it is a support level that has reacted quite stringently in the past. I think we will continue to see a lot of choppiness, but with the attitude of the market being a difficult thing to get a handle on, as there are plenty of geopolitical issues out there, and that of course the US dollar has been strengthening.
The 10-year note interest rates will of course have a little bit to do with the value of the gold market as well, as it affects the value of the US dollar. If the US dollar strengthens rather significantly, that will continue to put bearish pressure on gold. Otherwise, a falling US dollar could send this market higher.
Gold Price Predictions Video 18.05.18
This article was originally posted on FX Empire