Gold Price Forecast – Gold Markets Break Triangle

Gold markets broke higher during the trading session on Thursday, breaking above a downtrend line that has been crucial to determining whether or not we can move.
Christopher Lewis
Gold daily chart, October 25, 2019

Gold markets rally during the trading session on Thursday, as we have broken above a downtrend in line that has been crucial. At this point it looks likely that the market is going to break out to the upside and continue to go higher, but obviously we have a lot of moving pieces. The 50-day EMA underneath does offer quite a bit of support, so therefore it’s likely that we could get a bit of a bounce from here. The uptrend line underneath should continue to offer support as well, and it should be noted that overall we are in a longer-term uptrend anyway. The market is likely to go looking towards the $1540 level, perhaps even the $1560 level.

Gold Technical Analysis Video 25.10.19

The central banks around the world continue to liquefy markets and ease monetary policy so it’s hard to imagine a scenario where gold falls for a significant amount of time. While the market has pulled back rather significantly lately, it’s been a slow and steady decline and it hasn’t exactly smacked of desperation. With that in mind I think that we are finally getting to a point where people are comfortable owning gold again, and the overall trend should continue. With that, the market is likely to continue to see a lot of bullish pressure over time, and therefore I would anticipate that buying on the dip should continue to work for the time being. It doesn’t mean that we are going to shoot straight up in the air, but it’s very likely that we will continue to see more upward pressure than down going forward.

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