Gold markets went sideways during the day on Friday, as we continue to fight resistance at the $1290 level. I think that there is even more resistance at the $1300 level, so I believe that it’s only a matter of time before the sellers get involved. This of course is a market that’s going to be highly sensitive to the rhetoric between the United States and North Korea, which has been ratcheting up lately. I believe that the market should then find its answer relatively soon, and if we can break above the $1300 level, we could go much higher. This is ultimately a market that is in consolidation, and has been for some time. A break above the $1300 level would of course be very significant, but I don’t know that we have the ability to do so quite yet. After all, if the overextension was continuing to pick up volume, one would think that Friday would have been the day we would’ve broken out instead of going sideways.
Short-term, I believe in selling
I think the gold has reached its high currently, but recognize the importance of the $1300 level. I think that the market could very well find itself going back to the $1275 level rather quickly, and then eventually the $1250 level. But, if we break above 1300 I think that the next target will be the $1325 level. This market of course is volatile, but most of the “fear trade” has already been factored in. Unless something changes, I think we will run out of momentum, and simply drift back into the consolidation that has been such a major part of this market over the last several months. Currently, I just don’t see the catalyst but realize that fear isn’t always rational.
Gold Prices Video 14.8.17
This article was originally posted on FX Empire
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