Gold Weekly Price Forecast – Gold markets fall again
We have lost over $100 an ounce since the beginning of summer, and there’s no signs of it letting out quite yet. However, if we can break above the $1215 level, I think we could get a snapback rally to the $1250 level. As you can see, I have an ellipse at the bottom of the trend line back in January 2017, so the question is whether or not that level holds? It’s possible that it does, but we simply must see the US dollar stop gaining so much ground against the other currencies globally. Right now, it has been relentless and there’s no reason to think it’s going to change in the short term. Because of this, we could break down to a fresh low again. I believe that a fresh new low would send this market towards the $1100 level, and then possibly even the $1000 level. However, if we get that rally, we could get a nice buying opportunity, it leads to the $1250 level.
Your capital is at risk
Make no mistake about it, this is all about the US dollar and its strength. The US dollar has been surging for some time, and that drives down the value of all precious metals. Gold is especially sensitive as it is one of the first places that traders will go to sell if the greenback rises.