Gold Price Forecast – Gold markets continue to consolidate
Gold markets have been sideways for several days, and it appears that the markets are simply waiting for some type of catalyst to go higher. I think that the gold market continues to grind sideways in the meantime, offer a nice range bound trading opportunities. If we can break above the $1195 level, the market should continue to go much higher. Overall, I think that the market will then go looking towards the $1200 level, and that’s an area that I would expect to be a juicy target for buyers. We need to see the US dollar calm down a bit, as it has been a bit overbought.
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I think the $1185 level is crucial, and if we can break down below there, then we could go much lower. The $1180 level underneath would be the next target, and then perhaps $1175. That would only be on a move higher in the value of the US dollar, something that I think is going to be difficult as the EUR/USD pair is close to so many important support level. I think that given enough time, Gold will pick up value, so I am more bullish than bearish but I also recognize that it’s going to take a bit of momentum to finally break out of the short term consolidation. Buying dips has worked over the last couple of days, so I will continue to do that going forward.