Gold Price Forecast – Gold markets break through trend line only to find buyers again

The Gold markets broke down below the uptrend line marked clearly on the chart, but as you can see the buyers have come back into the marketplace to show signs of resiliency yet again. With the jobs number coming out on Friday, it is very likely that we will see a lot of volatility.
Christopher Lewis
Gold daily chart, August 02, 2019

Gold markets pulled back significantly during the trading session on Thursday, breaking through the uptrend line and reaching down towards the $1415 level. At this point, there is a lot of support underneath there as well, as the $1400 level is massive support and the bottom of what could be a larger rectangle. The support level underneath extends down to the $1390 level based upon short-term charts that of course the fact that the 50 day EMA is reaching towards that area. Overall, this is a market that should show plenty of buying opportunities underneath, but at this point one thing that we need to pay attention to is the fact that the central banks around the world continue to cut interest rates and looser monetary policy, so that of course does wonders for precious metals markets.

Gold Technical Analysis Video 02.08.19

If we get some type of selloff after the jobs figure on Friday, it’s very likely that we will get an opportunity to go long. Ultimately, this is a market that I think has a hard “floor” underneath, and therefore it’s likely that the market will eventually continue to go back and forth and then build up enough momentum to finally break out to the upside. The $1500 level above is massive resistance as a round figure, but at this point I think we have the liberty to do exactly that. I look at pullbacks as potential value to take advantage of.

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