Gold Price Forecast – Gold markets extraordinarily volatile on Friday
Gold markets were very difficult to trade on Friday, initially breaking down rather drastically, but then turning right back around to reach towards the $1225 level. That’s an area that should have a certain amount of resistance attached to it, but I think at this point what we are looking at is a marketplace that is difficult to buy, even though we have seen such a nice turnaround. There is a lot of resistance above, and quite frankly looking for signs of exhaustion will probably be the best way to look for trading opportunities in this market.
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Even if we break higher, I think that the $1232 level is another sign of resistance and should be where we see sellers get involved in this market. I think that the $1200 level underneath is massive support, and I feel that it is only a matter time before the buyers would come in for a longer-term move at that level. If we were to break down below the $1200 level, that could have this market unwinding rather drastically, perhaps reaching as low as $1000 given enough time. The volatility is going to continue to be a major issue, as the market is being kicked around by larger funds right now. That being said, I’m looking for a selling opportunity but I would be very cautious about when I put money to work.