Gold markets continue to see a significant amount of volatility, as we have seen plenty of selling pressure near the $1235 level, but there’s also demand underneath. I think that the market is trying to grind its way higher, perhaps to the $1240 region. That’s an area where I would expect to see a lot of selling and supply. With that in mind, I think that we are looking for some type of exhaustion in that region to turn around and start shorting again. It’s not until we break above the $1250 level that I would be a bit more convinced of the longer-term move. At the very least, I think we should probably see noisy trading, and perhaps a pullback towards the $1220 level to find more support for the market.
The longer-term support certainly can be found at the $1200 level, as it is important on the weekly charts. I think that the markets will probably continue to be conscious of that large, round, psychologically relevant figure. If we were to break down below there, that could unwind the market for an even more significant move. Overall, I think that the market is probably going to continue to see a significant amount of noise, which makes a lot of sense considering that the Gold markets are reacting directly to the trade war concerns, new tariffs being applied, and of course the waxing and waning of strength when it comes to the US dollar.