Gold Price forecast for the week of July 31, 2017, Technical Analysis

Gold markets initially fell during the week, but found enough support underneath the $1250 level to turn around and form a nice-looking hammer. The hammer is at the middle point of the overall consolidation area, so it makes sense that we would continue to go higher. The $1300 level above is the top of the consolidation zone, and I think the given enough time we will continue to reach towards that level. I believe in buying dips, and have no interest in shorting unless of course we break down below the bottom of the weekly candle, which would be a very negative sign. That being the case, I believe that we will see quite a bit of bullish pressure over the next couple of weeks, especially considering that the US dollar has seen a lot of softness.

Volatility

A lot of the moves in gold is going to come down to the Federal Reserve, and the interest rate hike expectations. The Federal Reserve was quite a bit more dovish than thought over the last week, so that should continue to offer a bit of support for the gold market as the US dollar falls. Ultimately, I believe that the market will continue to find enough pressure to reach towards the $1300 level, but breaking above there would be a completely different scenario and of course question. If we can break above the $1300 level, that would be extraordinarily bullish, but in the meantime, I think we continue to see a lot of back and forth reading longer-term, but the next couple of weeks look to be set up for bullish pressure.

Gold Prices Video 31.7.17