Gold Price Forecast – Gold hangs onto gains

Gold markets rallied, breaking towards the $1225 level recently, but since then we have gone sideways. This is a very bullish sign though, because it shows us that the market is comfortable hanging onto the gains from the move last week. If that’s the case, then it shows real resiliency and I think eventually we will try to go to the $1250 level. Once we break above that level, the market should continue to go much higher. Otherwise, we could get a pullback that I think there is enough support underneath the continue to attract money if we do fall. I think that the market is trying to turn around and form some type of large bays, as gold has been sold off so drastically.

The alternate scenario would be breaking down below the $1175 level, which would be very negative and could unwind the gold market even further. If that’s the case, the market probably rolls down to the $1100 level, and then possibly the $1000 level after that. This is a market that has a lot of greed and fear built into it, so pay attention to the fact that headlines out there are continuing to make people very nervous, and that seems to be helping gold. Beyond that, we have what looks to be rather cheap gold, and I think a lot of longer-term investors are starting to get involved at this point. I prefer physical gold, but short-term pullbacks can offers short-term buying opportunities at this point.

Gold Outlook Video 19.10.18