Gold Price Forecast : Gold markets have gone back and forth during the course of the week, jumping around the $1700 level as a fulcrum. Ultimately, we also have the 61.8% Fibonacci retracement level in that area, which would suggest that technical traders might be involved here as well.
Gold Price Forecast – $1700 Level is Very Crucial Support
When you look to the left, you can see that the $1700 region has been both support and resistance, so I do like the idea of placing a trader, simply because if we get an impulsive candlestick, it should mean something.
Gold Price Forecast, If we break above the top of the candlestick for the week, then I think the pullback might be getting closer to being over with. By breaking above there, we could see the market reached towards the $2000 level over the longer term. On the other hand, if we were to break down below the bottom of the candlestick for the week, it is very likely that we would see this market go looking towards the $1500 level over the next couple of months.
Either way, we are clearly looking at the market through the prism of making a big move rather soon, so therefore I do believe that we will have a nice trading signal in one direction or the other for the next couple of months that we can take advantage of on multiple time frames.
Pay close attention to the yields, because the bond markets have been like a wrecking ball for gold as of late, and therefore we need to be very cognizant of what is going on over there.