Gold Forecast: Gold Continues to Look Vulnerable

Gold markets tried to recover during trading on Thursday but gave back gains rather quickly as we had approached the $1750 level. This is an area that has a certain amount of psychology attached to it, but really at this point, I think the only thing that we are paying attention to is the US dollar and of course interest rates in America. At this point, we continue to see a “sell the rally” type of situation, so I think that it’s possible that we continue to find negativity. The $1720 level is the next support level, and if we were to break it down below there it could send this market much lower. The market certainly has taken a significant “punch to the face”, and therefore it makes sense that we would see a lot of downward pressure still. We would need to see a complete change in the attitude of the Federal Reserve for gold markets to suddenly turn around. Ultimately, we looked very sick at this point, and therefore I think it’s probably going to continue to see a lot of negative attention.

Michael Cooper

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