Good day forex traders and readers.
Welcome to another gold price forecast review as we track the performance of the precious metal.
In the previous forecast we noted gold testing a strong resistance of $1400. We were likely to face bearish pressure as market forces kick in to rein in the ascend.
Having said so we note that gold is recovering from this bearish dip as it is now testing the resistance of $1340. Should this resistance fall, we may consider the possibility of another test on the $1400 level.
From a fundamental point of view, gold demand has not dropped and hence this is the underlying stance of our trades. Market forces have been dampening this commodity and often during trying times will the underlying sentiment reveal. The Middle East crises of both Syria and Israel are probably injecting much risk aversion into the markets, causing a safe haven demand for gold.
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