Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Gold Forecast: Markets Grind Sideways as Rates Threatened

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

I think that we are going to struggle to continue going higher, and we certainly have not seen the type of volume of that would make me believe it is going to happen quickly.

Gold markets have been slightly positive during the trading session on Friday to take back some of the losses from Thursday. The market is still very sluggish and does not look very strong, due to the fact that the yields in America continue to throw it around. The Friday session was quad witching, which means that certain commodity options were expiring for a quarterly timeframe, and that can be a driver of choppiness as well.

At this point, I still do not trust anything in this market as far as buying is concerned until we get above the $1800 level. I suspect that we are very likely going to see a lot of fluctuation going forward, as there has been so much noise in the market, and that will greatly influence what happens in the US dollar, which by extension greatly influences what happens in the gold market. After all, gold has been selling off for quite some time, and not much has changed.

Underneath, I see the $1700 level as a major support level, and it is worth noting that we have bounced from there. However, it has been a relatively weak bounce and I have seen no impulsivity as far as the last 10 candles have shown. That tells me that people are not necessarily jumping into this market with any type of urgency. Because of this, I have the sneaking suspicion that we have not seen the end of the selling, and that will be especially true if we see yields in the 10-year note break above the 1.75% level, something that looks very likely to happen given enough time.

Because of all of this, I think that we are going to struggle to continue going higher, and we certainly have not seen the type of volume of that would make me believe it is going to happen quickly. If we did break above the $1800 level though, then I think at that point you would have to look at this as a trend change, and perhaps opens up the possibility of going to the $1850 level, maybe even $1900. If we break down below the recent lows, then it opens up a move to the $1500 level.

Gold

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews