Gold Price Forecast – Gold markets continue to struggle with strong greenback
The greenback continues to be the strongest currencies in the world overall, and that continues to weigh upon emerging markets. This in turn can cause a lot of gold selling as emerging markets tend to be much more sensitive to these moves and will often sell gold to prop up the local currency. Beyond that, gold is priced in US dollars, so as the US dollar flexes its muscles, it makes sense that we would continue to see gold struggle. In general, I believe that the market participants are now looking at the $1200 level as a target. However, if we were to turn around and break above the $1215 level, that could send Gold much higher. Gold markets are very jittery to say the least, and at this point I think you should probably look at the $1200 level as a bit of a fulcrum for price.
Your capital is at risk
I anticipate seeing a lot of erratic moves in this general vicinity, but I have been buying little bits and pieces of physical gold because I recognize how cheap it is historically. However, as far as leverage is concerned, you should consider it toxic for trading this marketplace, because we are moving on far too many random headlines to feel comfortable taking any major stands in anything that’s remotely considered to be a risk appetite. With all this volatility, keep your position size small if you are trading the CFD market. I would stay completely out of the futures markets.