Gold Price Forecast July 17, 2017, Technical Analysis
Gold markets shut higher during the day on Friday, and eventually broke above the $1225 level. This was due to weaker than expected inflationary numbers of the United States, and this provides speculation that the Federal Reserve will be open to raise interest rates very quickly. Recently, Janet Yellen has suggested that the Federal Reserve will be making small moves and in slow-motion going forward. This gives those who believe in gold a bit of a reprieve, as it is working against the value of the US dollar. However, I think the given enough time this market is likely to grind its way higher, not necessarily explode. This move has pulled back slightly is a record this, but longer-term I think that we will probably find buyers and go looking for the $1240 level. Ultimately, if the market sees buying pressure, it could be a short-term “buy on the dips” type of market.
The alternate scenario
The alternate scenario of course is that we can break down below the $1220 level, the market should return to lows again. It’ll be difficult to see that happen over the next several sessions, but you should always have the alternate possibilities in mind. If we get that, I think the market will then go looking towards the $1200 level again. The market does tend to be thin on Fridays, so part of this move may be exacerbated by that fact. Given enough time, I believe that you will see the market move back and forth in both directions, so quite frankly I think if you’re quick enough, you probably will be able to both buy and sell through the volatility.
This article was originally posted on FX Empire