Gold markets rose slightly during the trading session on Wednesday yet remain very choppy as the geopolitical situation continues to move markets in general. Beyond that, the US dollar has been very noisy as of late as traders try to get a grasp on what is happening around the world as far as trade is concerned.
Gold markets went back and forth during the trading session on Wednesday, rallying slightly as the Americans were away celebrating the Independence Day holiday. This made for a thin market, so I would not take too much to heart with the move to the upside, but I think we are essentially in a situation where we should be waiting for signs of exhaustion that we can start selling. This is because Gold has recently broken below a major uptrend line, and of course the US dollar continues to strengthen overall. However, in the Forex world the US dollar has given back a little bit of the gains, as it may have gotten a bit overbought and was due for a correction.
I believe that the market will eventually go looking towards the $1200 level, and at this point I’m waiting for some type of exhaustive set up to take advantage of the US dollar being offered “on the cheap.” Overall, I think that the market is one that you need to be patient with, and therefore I think the old axiom of “we get paid to wait as traders” certainly applies to this market.
Overall this will continue to be very noisy market, but I think that the patient and prudent trader will find plenty of opportunities in this longer-term downtrend. However, if we were to break above the $1275 level should send this market looking towards the $1285 level.