Gold Weekly Price Forecast – Gold markets fall significantly

Gold markets initially tried to rally during the week but found plenty of resistance near the $1305 level to turn around and break down significantly. The market has broken through a major uptrend line, and it now looks as if the $1275 level will be targeted. If we can break down below there, the market goes even lower, perhaps down to the $1250 level, followed very quickly by the $1240 level.

By breaking down through the major uptrend line, it appears that we have much more negativity coming, mainly in reaction to concerns about trade wars, and a strengthening of the US dollar as it appears that the Federal Reserve is by far the only central bank out there looking to raise interest rates anytime soon. After the ECB failed to show any signs of hawkish in this on Thursday, this set up the possibility of the US dollar strengthening rather quickly. As people go into bonds to trying to preserve capital, this automatically drives up the value of the US dollar, which quite often can weigh upon the value of gold as it is priced in those same US dollar. Overall, I think that the market could find plenty of support at the $1240 level, but I think until we turn around and break above the top of the range for the week that we have just completed, this market looks very vulnerable to selloffs.

Gold Technical Analysis Video 18.06.18

This article was originally posted on FX Empire

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