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

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

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