Gold Price Forecast – Gold markets break out

Gold markets broke out during the trading session on Monday, breaking above the top of the consolidation area that I have marked on the chart. By breaking above the $1475 level, we now are starting to focus on the $1500 level above which of course will be very interesting from a technical analysis point of view. $1500 of course will attract a lot of attention, so I believe that a huge amount of volatility could present itself in that area.

Gold Price Video 06.08.19

Pullbacks at this point should be supported at several levels, not the least of which is the $1450 level, and of course the gap underneath. Quite frankly, I don’t think that the market will break down below the $1425 level, at least not easily. The 50 day EMA is starting to reach towards that area, so I think that there are plenty of reasons to believe that the buyers will come back.

Keep in mind that the US dollar is strengthening, so if you have the opportunity to buy gold in other currencies, that might be the best way to go going forward as well. All things being equal, I think that the market shows a proclivity to reach towards that previously mentioned $1500 level, and if we can break above that level, it’s likely that the market is going to go into more or less a parabolic situation. As far as selling is concerned, I have no interest in doing so until we break down below the $1400 level on a daily close. This is a very bullish market.

Please let us know what you think in the comments below