Gold Forecast: Gold markets have initially pulled back a bit during the course of the trading session on Monday, only to turn around and reach towards the 200 day EMA. The $1800 level is a bit of a magnet for price as well, so with that being the case I think that this is a market that is trying to figure out where to go for the longer-term move.
To the upside, if we were to clear the highs from last week, it is very likely that we could go looking towards the $1860 level, which is an area that I think a lot of traders will be paying quite a bit of attention to as it would fill the gap that happen a couple of weeks ago.
Pay attention to the US Dollar Index, because if we start to see the US dollar strengthened quite drastically, that will almost certainly work against the value of gold. To the downside, the $1750 level is a major support level that I think a lot of people need to pay close attention to.
Gold Forecast Updates
If we were to break down below that level, then it opens up the possibility of a huge move lower, down to the $1680 level or we had formed a bit of a double bottom. After that, gold will be in serious trouble as I suspect we will go looking towards at least $1500, possibly even lower than that. Ultimately, this is a market that I think will continue to be held hostage by the US dollar, but that is rather typical.