Monthly Gold forecast
Gold price started May’s journey from 1310$+ range and it tested only 1320$ in entire month. From high it crashed nearly 30$ and made low of 1281$ at 21st May leaving all hopes for buyers in dry. Finally gold price closed at near 1300$ for the month of May. We had major volatility in May but prices did not move anywhere and traded in a small range entire month. Our trading signals performed really well fetching is handsome profits in May. Signals performing will be up by 16th June 2018, Dont forget to check in performance after 16th June.
This month gold tried to party by testing 1306$ but then President Trump hinted about Non farm job data which going to shock and market took shock even before data. Gold price nose dived and dollar index fired. Trump tweet did more damage than data could do. Gold finally closed near 1290$ signaling a tough week ahead for buyers. Read our weekly forecast in our weekly newsletter.
This month we have major event of President Trump meeting North Korean lead Kim Jong Yun. We had too many twists and turn in past regarding this summit. First Korea threatened to nuke US, Then US threatened back with nukes and more sanctions.
We had North and South Korea’s compromise when they finally closed war chapter and Kim Jong Yun visited South Korea first time since war in 1950. Korean compromise came as a shock as Kim visited South Korea without any announcement or hint. He just visited and tried to solve things. But things are yet to be solved on the ground.
We have Fed meeting this month deciding if interest rate should go up this time. We are certain a small cut can come but main highlight would be Fed’s outlook. If fed shows some kind of soft tone on interest rate as they already shown then gold price should not face any problem going upwards. If fed decided to pace interest rate then we may see some trouble in gold prices again.
We are brewing another trade ware between United States and European Union. We need to see outcome of that in upcoming days. As of now we are looking trouble relations between US and its main allies. Even Canada has hit back after President Trump imposed tariffs on aluminium and steel. Now we need to see how US reacts and what Trump decides.
Monthly resistance stands at 1367$, Once traders break and close above this level we may see non stop rally upto 1420$- 1500$. Even Higher levels are not ruled out as we will be entering in yearly trade and we may close it in December only. Once market break 1367$ we should be certain that we have seen this year’s bottom and now journey should be up only towards 1400$ and 1500$.
While on downside we have limited room upto 1250$, If traders break and close below this level then we may face emergency selling upto 1200$- 1160$. Despite limited downside we wont advice anyone trading without stoploss.
Monthly gold forecast conclusion: Trend is not clear for now, We have mentioned our weekly levels in our newsletter. Once that level close then we would be comfortable with buy. Subscribe our free newsletter here
Apart from this analysis, we need to see how President Trump reacts after major meet in Singapore at 12th June this month. If everything goes well then we may feel more pressure in prices as market may leave global tensions factor.