Gold Forecast June 10, 2016

Gold Forecast June 8, 2016
June 7, 2016
Forex Trading System Basics: Support and Resistance
June 10, 2016

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A couple of days ago, Chris had suggested that you start buying gold above the $1250 level. Since then, we have busted above that level quite significantly, and it now looks like our gold forecast continues to show bullish pressure. This is because on Thursday we initially fell during the course of the day but turned right back around to form a bit of a hammer. The hammer of course shows that the sellers jumping into the market simply provided what buyers thought of as “value”, and as a result it looks like there are plenty of people that have missed the move, and are willing to get involved now.

Gold forecast looking rosy

Gold should be very bullish going forward, as the US dollar continues to fall significantly. After all, with the anemic jobs number on Friday it’s hard to believe that the Federal Reserve will be willing to do several interest-rate hikes as once expected. That puts quite a bit of pressure on the greenback, and suggests that the dollar will continue to suffer over the longer term. With this, I believe that we have now entered a longer-term “buy-and-hold” type of scenario when it comes to gold.

Recently, I have been buying physical metal, but I also like the idea of trading the CFD markets, as it gives me the ability to jump in and out of the markets rather quickly and without the expense of futures contracts. With that being the case, I believe that CFD traders will continue to be short-term buyers and enter the market every time it pulls back. Once we break above the $1300 level though, I think things change and then it becomes more or less a market that will run much farther to the upside. In fact, it’s very possible that gold will be the trade of not only 2016, but possibly the 2017 trading season. I have no interest whatsoever in selling this market right now, and believe that the conditions are right for a strong move. We are essentially in a bit of a currency war with the central banks around the world, and this will continue to drive money into hard assets and gold in particular.

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