Gold is currently in a large ranging market, with strong resistance around the $1366 area and finding support around the $1310 area. My long term outlook for gold is bullish possibly seeing $1400 before the end of Q3. In the short term I believe we will see more selling pressure before finding new buyers around $1300. Before we see $1400 we would have to break and close above $1366 and we may find our next psychological resistance at the $1375 level.
To back this up I look at the Dollar index were we are still experiencing a downtrend, although the dollar seem bullish due the breakout above its previous range due to the higher yield offering on 10 year Tbonds.
I believe the Dollar is still very weak and long term this weakness will cause investors to head towards the safety of gold.
To back this up I look at the Dollar index were we are still experiencing a downtrend, although the dollar seem bullish due the breakout above its previous range due to the higher yield offering on 10 year Tbonds.
I believe the Dollar is still very weak and long term this weakness will cause investors to head towards the safety of gold.