Gold markets break major trend line during Tuesday session

Gold markets break down rather significantly during the day, losing over $20 during early trading in America. By slicing through the uptrend line the way we have, that’s a very negative sign, but I do recognize that there are support of levels underneath as well. Now that we are broken through this area, if we do not recapture the $1300 level, I think that we would probably go down to the $1275 level, an area that has been supportive more than once. I think that the overall attitude of this market continues to find buyers given enough time, but clearly this was a significant reaction to a significant move in the greenback.

I believe that breaking above the $1300 level could send this market looking for the $1325 level next, an area that has been resistance recently. I think you need to be a bit nimble trading gold, unless of course you are a longer-term trader, which of course means that you can add slowly to ride out the potential volatility that we will most certainly see in this market, especially if the US dollar continues to move the way it has over the summer like I think it will. I believe that the market will certainly find a lot of support at the $1275 level, as it has in the past. However, I think $1300 now will be very resistant, especially if we drop farther before attempting to retake it.

Price of Gold Video 16.05.18