Gold markets start out the week a bit soft
Gold markets broke down significantly at the open on Monday, reaching down to the $1283 level before bouncing a bit. A rally from here should be a potential opportunity to start selling again, so I think if we can break down from here it’s likely that we could drop from here. I believe that the $1295 level above is a bit of the ceiling, not only beyond that we also have the previous uptrend line that should offer resistance at the $1300 level. Ultimately, this is a market that I think will find plenty of sellers, as interest rates continue to rally in the United States.
The $1275 level underneath is the target, at least until we were to break above the $1300 handle. I think that the market has seen enough bearish pressure to warrant more selling, but I don’t necessarily think that the market is going to break apart drastically, and I think that the 10-year treasury note needs to be paid close attention to, as interest rates rising has deftly put a lot of selling pressure on gold. I believe that the market is more than likely going to look to test the $1275 level underneath, and probably quicker than most people anticipate. I don’t think that we break to the upside quite yet, unless of course we see some type of rally in the treasury markets, driving yields down. However, beyond that we need to worry about geopolitical concerns.
Gold Analysis Video 22.05.18
This article was originally posted on FX Empire
