After all, the market is very likely to see plenty ofstrength, which of course keeps a lot of downward pressure on gold. The $1750 level could be a significant resistant barrier, and I think it’s going to take quite a bit of momentum to finally break out. However, even if we break above there, then we have plenty of resistance at the $1800 level. The $1800 level is a large, round, psychologically significant figure, and then of course the previous uptrend line sit there as well.
So now the plan is to pay close attention to the US dollar and the strength that we continue to see there. After all, the, thereby driving the value of the dollar higher. As long as that’s going to be the case, there’s no real argument for gold to take off, because it is price and those very same US dollars.
If we do break down below the $1700 level, is very likely that the market could drop a couple of hundred dollars rather quickly., but at this point, I think it’s pretty clear that gold is struggling, and in order to see some type of turnaround you would have to see the Federal Reserve change its tune completely. I just don’t see that happening anytime soon, so therefore it’s likely that gold will continue to struggle going forward.
Ultimately, we will have to see a complete change in the global economy to see this market take off for a bigger move.