Gold Price Forecast – Gold markets break out

Gold markets broke out during the trading session on Friday, slicing through a major downtrend line and breaking through a ton of resistance. At this point in time, it looks very likely that we continue to go higher based upon what we see.
Christopher Lewis
Gold daily chart, June 06, 2019

Gold markets rallied significantly during the trading session on Friday, slicing through the downtrend line that has been so important for so long. Beyond that, the $1300 level is in the rearview mirror, so that obviously is a very bullish sign as well. The fact that we closed at the top of the candle stick, shows that we have a ton of support for the market. At this point in time it looks like the market is going to try to break above the $1315 level, and perhaps reaching towards the $1325 level.

Gold Price Video 03.06.19

Pullbacks at this point should have plenty of support near the $1300 level and then the downtrend line which is just underneath. If we break down below that downtrend line, then we could test the 50 day EMA, which is pictured in red on the chart. Speaking of the 50 day EMA, it is starting to turn higher, and therefore it’s a very good sign that we could go higher.

It now appears as if the 200 day EMA which is pictured in blue has offered enough support to keep the market afloat and therefore I think we continue to see buyers on dips. Longer-term, I think as long as we have plenty of issues when it comes to global risk and financial markets, it’s very likely that we will continue to see a bit of a bid for Gold. Quite frankly, it looked as if Gold was going to fall apart but things have changed completely.

Please let us know what you think in the comments below

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