Kitco News: Gold Hitting "Critical Area" of $1,178

August 17, 2018 - 4:08pm

 by Gary Wagner

Gold has a hit a “critical” area of $1,178 an ounce due to technical factors, said Gary Wagner, editor of TheGoldForecast.com.

“If it breaks below that, I think it will go to $1,124, and if it holds in this area, our next resistance point is going to be back at $1,200,” Wagner told Kitco News.

Wagner noted that gold is not yet at a bottom and its direction from this current critical level is mainly dependent on the strength of the dollar. Importantly, gold’s relationship to the dollar is most sensitive on the yellow metal’s downside.

“If the dollar begins to weaken, we will see gold recover, but it’s not going to be the other way around,” he said.

Sentiment Indicator:

Gold Forecast: Proper Action
See Market Forecast for outlook
CONDITIONAL TRADE ALERT:
We are short  December gold @ $1217.60, we recommend that you take your stop at $1195.13 to the market if gold opens higher on Sunday (Monday overseas)
Gold Market Forecast
As you know for the last couple of months we have been forecasting lower gold prices with a target of $1200 per ounce is our initial objective. Monday we reached that goal in both spot as well as December futures.
Wednesday we revised our target to 1170, which was hit on Wednesday. With the strong recovery over the last two days we are issuing a conditional TRADE ALERT ( see proper action).