Gold Silver Reports – Gold markets tried to rally during the week but found enough resistance above the $1275 level to roll things over and form a bit of a shooting star.
We have seen a couple of hammers on the weekly chart form just below though, so I think you can’t read too much into it. I think there is a significant amount of support at the $1250 level as well, so if anything, I think that a move to the upside is probably going to be the more impressive of the 2 possibilities. If we were to break above the $1300 level, the market should then go to the $1325 level after that.
You could make an argument for an uptrend in channel, which would coincide at the $1250 handle. If we can stay above there, the market likely continues to find buyers given enough time.
Read More: Gold Spot Support Level $1247——$1250
However, the Federal Reserve looks likely to raise interest rates, and that should bring up the value of the US dollar in general. If that’s the case, then gold could roll over a bit. However, with the lack of inflation, I think that is working against gold as well. Ultimately, this is a market that will continue to be just as mixed up as many others are right now, as we do not know with any type of certainty that the Federal Reserve is going to do one thing or the other.
I think that much like the silver market, it’s likely that we will continue to fare better on short-term charts. Short-term trading is probably as good as it’s going to get, as the volatility has been so extreme. In general, I think gold is probably best traded in small increments until we get clarity, most likely to the upside. – Neal Bhai Reports