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Gold markets went back and forth during the week, reaching towards the $1300 level below, and then started bouncing significantly. The risk aversion of the market will probably continue to pick up as we are starting to concern ourselves with the terrace that the United States are levying on aluminum and steel. This could get the market very nervous as there is the potential of a trade war from other countries. Because of this, the market could find traders jumping into this market getting away from risk. Ultimately, the market should break above the $1350 level and continue to reach towards the $1400 level. I believe that the market will continue to be very noisy, but eventually we will break out and go higher for a longer-term move towards the $1800 level and possibly even the $2000 level.
Pullback should find plenty of support, and I think will represent value for market that has already been going higher anyway. When you look at the weekly chart, it doesn’t take much imagination to see either an up-trending channel, or the potential ascending triangle that we’ve been dealing with. Either way, I have no interest in shorting this market, and believe that gold will continue to be a good way to play against risk appetite around the world falling, and of course could be a nice safe haven for any type of trade war as gold is international, and not reliant on one particular economy, and if both are falling, gold will come out well above the currencies.
Gold Technical Analysis Video 05.03.18
This article was originally posted on FX Empire