Gold Price Forecast – Gold markets continue to show weakness on Thursday
Gold markets continue to look soft, as demand for US dollars seems to be increasing. I think that the $1275 level has been important in the past, so now that we have broken down below there, I think that the market could open up towards the $1250 level. That doesn’t mean we get there in one shot obviously, and therefore these short-term rally should be selling opportunities. In fact, I expect to see a lot of resistance extending to the $1285 level above, so therefore I would be a seller of exhaustive candles in the short term.
For those of you who have followed me at FX Empire, you know that longer-term I do like the idea of gold as an investment. However, trading is a completely different animal, and therefore you should treat it completely different. Short-term buying opportunities can present themselves, just as a longer-term selling opportunities could. At this point, it makes sense that the $1250 level would be targeted, and I would anticipate to see quite a bit of support in that area. You can see that I have left the longer-term uptrend line on the chart, and therefore I break above that level would attract my attention.
Your capital is at risk
I believe that the summer will feature a strengthening US dollar, so that should continue to plague Gold markets overall. If you’re a longer-term investor though, picking up physical gold at these lower levels could work out quite nicely.