Gold Price Forecast – Gold markets bang into downtrend line

Gold markets rally during the trading session, gapping higher to kick off Wednesday and then slamming into the downtrend line that has been an effective barrier as of late.
Christopher Lewis

Gold markets of course have been very volatile as of late, as the market gap higher and then slammed into the downtrend line. At this point, the market looks likely to find plenty of reason to break to the upside, as there are a lot of geopolitical concerns out there, and of course central banks around the world continue to cut rates and loosen monetary policy. With that being the case, the market is likely to continue to go higher, but that downtrend line of course is a small barrier that we will have to overcome in the meantime. I look at short-term pullbacks as buying opportunities, with the 50 day EMA underneath offering support as well. Not only that, we also have the $1500 level that could come into play also.

Gold Price Video 10.10.19

Looking at the longer-term chart, we are essentially in the middle of a wedge pattern that should come into play and continue to push the market to the upside. If we do break out, the recent high near the $1560 level should be targeted, and then eventually much higher such as $1600 and possibly even $1800.

Beyond all of that, the reality is that there are plenty of geopolitical concerns in trade relation concerns out there to keep this market more on the bullish side anyway, so given enough time it’s probably more likely to see something happened to spook the markets and rush into gold than anything else. That being said though, if some reason the Americans and the Chinese can come together, it’s possible that Gold could fall. Otherwise, I continue to look at gold through the prism of potential value.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.