Gold markets pulled back a bit during the trading session on Monday, as the $1300 level has caused a bit of resistance. That of course is a large, round, psychologically significant figure, so it makes sense that it could cause a few issues. Ultimately, this is a market that I believe will continue to look at the $1300 level as crucial, but I also believe that it’s only a matter of time that we break back through that level. The main reason of course be in the fact that we had seen so much bullish pressure and volume on Friday that it makes sense we would need to pullback just a bit.
Gold Price Forecast Video 12.03.19
However, as you can see I have a rectangle drawn on the chart that is centered on the $1275 level. This is an area that I think will continue to be supportive, so I like buying dips as they occur. It’s not until we break down below the $1275 level that I would be a seller of gold and would need to see the EUR/USD pair break down significantly below the 1.12 level on a daily close, and with conviction. I do believe that the US dollar is trying to soften a bit, and that of course should be good for gold. To the upside, I look at the $1325 level as a very significant resistance barrier if we do break out. Expect a lot of volatility to say the least, so I would stick to shorter-term charts with a slightly upward bias.
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This article was originally posted on FX Empire