By FXEmpire.com
The gold markets fell for most of the week as the fear trade keeps driving money into the US dollar. The inverse relationship will weigh upon gold as the more valuable Dollar simply purchases more of it. The $1,500 level is obviously a support level, and a break below that would signal a serious fall.
The daily close sub-$1,500 has us selling hand over fist in this market. The past two weeks have produced hammers though, and these candles are very bullish signs. The breaking of the top of the two candles, at roughly the $1,600 level has us buying this market as a bounce would then be expected. However, the overall action hasn’t been that stellar lately, and we think the shorting of this market will more than likely be triggered sooner or later as the Dollar continues to be the one thing that investors around the world want at the moment. (More specifically US Treasuries, which of course are priced in US dollars.)
Click here for further Gold Forecast.
Originally posted here
