Gold Price Forecast – Gold markets find support
Gold markets fell initially during the day on Wednesday, finding support just below the $1230 level. Ultimately, this is a market that I think continues to find buyers on these dips as gold is a bit of a safe haven trade as of late. I believe that the market continues to be very skittish about global trade and of course rhetoric coming out of the mouths of politicians, so that of course will continue to be a major issue. Gold is historically cheap, at least looking at the last couple of years, and we have seem to have found a bit of a bottom underneath.
Your capital is at risk
With that being said, I believe that slowly building up a position is probably the best move, as you can mitigate some of the risk involved in the current trading environment. Overall, I believe this is a market that will continue to be erratic, so take your time as there is a lot of head wind out there that could get in the way of either direction for that matter. Looking at this chart, I believe the $1200 level is offering a major “floor”, so a break down below there would change like, but I could perhaps even start to move that “floor” up to the $1225 level depending on what happens over the next several days. Either way, I like Gold longer-term and I think that as the US dollar is getting to extreme levels, it’s likely that Gold will recover going forward, but it isn’t necessarily going to be easy.