Gold Price Forecast – Gold markets reach major resistance
Gold markets rallied initially during the day, showing signs of strength, and tagging the $1210 level. This was a very bullish move, but at this point I think it’s obvious that the market may have gotten ahead of itself. We are starting to see the US dollar turn around and show signs of strength late US morning. This of course can work against the value of precious metals and quite frankly I think a lot of markets are simply grinding around trying to figure out where they want to be ahead of the Nonfarm Payroll Numbers.
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Looking at the overall attitude of markets, I do believe that we want to see more “risk on”, but obviously we are quite ready to do it yet. That makes sense because there’s no need to hang onto a riskier position like the gold market ahead of the jobs number which of course will cause absolute chaos. After that announcement though, I think we will get a little bit of stability and we will try to figure out where to go next. I would not be surprised at all to see this market turned around and try to reach the $1200 level below. However, I would fully anticipate that there should be buyers in that region, so I would look at that as a potential value play. I also recognize that the $1195 level underneath will be supportive as well.