Gold Price Forecast – Gold markets collapse on Friday

collected by :kiven Dixter

Gold markets broke down drastically during the trading session on Friday, slicing through an uptrend line that has extended from late 2016. I believe that any rally at this point has to be looked at with suspicion, especially if the US dollar continues to show signs of strength overall. Right now, I think that the market will probably extend down to the $1250 level over the longer-term. I believe that overall, this will be greatly influenced by monetary flows in the Forex world, so pay attention to US treasuries. I think that the market will continue to be very noisy, but I think selling the rallies will continue to pay going forward.

Gold Price Breaks Three-Day Rising Spree: Five Things To Know

Gold prices edged lower on Saturday, marking the first decline after three consecutive days. Gold prices in Delhi fell by Rs 40 to Rs 31,650 per 10 grams at the bullion market. The gold prices, said traders, were driven by a weak trend overseas amid easing demand from local jewellers. Gold prices had gained by Rs 330 per 10 grams in the national capital from Wednesday to Friday. What dollar weakness means: Weakness in the dollar tends to lift gold, making the greenback-priced metal cheaper for non-US investors.

Gold Price Forecast: Stronger corrective rally likely

as mentioned in Short-term bullish reversal signs are seen in the gold daily and weekly chart. Weekly chartCurrently, gold is reporting marginal week-on-week gains at $1,255, having clocked a high and low of $1,261 and $1,238 earlier this week. That said, the daily chart indicates the metal is more likely than not to close above $1,261 next week. ViewThe metal could see a stronger rally towards $1,270 next week and could close above $1,261 next Friday, confirming a bull reversal on the weekly chart. On the downside, acceptance below $1,238 (Tuesday's low) would kill the probability of a stronger corrective rally and would shift risk in favor of a drop towards $1,200.