Gold Price Forecast – Gold Markets Bounce From Support Level

Gold markets bounce again from the crucial $1450 level, an area that has been crucial for the markets more than once. That being the case, it’s likely that the market will try to find its bearings in this area.
Christopher Lewis
Gold daily chart, November 27, 2019

Gold markets pulled back a bit during the trading session on Tuesday, reaching towards $1450 level, an area that was previous resistance. At this point, that previous resistance at the top of the ascending triangle has held the market up, which is basically what needs to happen in order for gold to continue going higher. There is the possibility that we are trying to form a bit of a “double bottom”, but at this point we need to see whether or not it holds at $1450. At that level does in fact hold, this could be the beginning of a move much higher.

Price of Gold Video 27.11.19

All things being equal, this is a market that needs to find a bit of momentum, because we have sold off so much. One of the things that does help the bullish case though is the fact that gold has drifted lower, not broken down drastically. It has been a slow and gradual descent in price, so that of course helps the entire situation. If we do break down below the $1450 level, it could test a major gap underneath, and then perhaps the 200 day EMA. If we were to break down below the 200 day EMA, it’s likely that the market then would fall apart and break down rather nastily, perhaps as low as $1300 level. If we do continue to break to the upside, the 50 day EMA above will be the initial target, then possibly the $1500 level. With this, I am cautiously optimistic but recognize there are a couple of levels underneath that need to hold.

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