Gold Price Forecast – Gold Markets Continue Consolidation

The gold markets pulled back a bit during the trading session on Friday, but then reacted positively after the Non-Farm Payroll number was released. Ultimately, it looks as if the gold markets are showing the same thing afterwards.
Christopher Lewis
Gold daily chart, November 04, 2019

Gold markets have pulled back a bit during the trading session on Friday, reaching down towards the $1505 level before showing signs of strength again. Ultimately, this is a market that should continue to find plenty of buyers. The daily candlestick is a bit of a hammer, and a break above the $1520 level signifies that the market breaks out to the upside and clears consolidation. Ultimately, the market then should continue to go looking towards the $1550 level. Gold markets should continue to see a lot of upward pressure, as the longer-term trend is most certainly strong.

Gold Technical Analysis Video 04.11.19

Clearing that level should open up the door to higher pricing, and then eventually go much higher. You could also make an argument for a bit of a bullish flag breakout, especially if we clear that level. All things being equal, I do like the idea of gold not only due to central bank’s easy monetary policy but there is also plenty of geopolitical concerns out there that could drive gold higher as well. All things being equal I like the idea of buying dips and I will continue to look at this market as an opportunity to pick up a gold “on the cheap.”

As far as selling is concerned, the $1450 level would have to be broken in order for me to think that the trend to change, and therefore it seems very unlikely that the market will get anywhere near that anytime soon, so I like the idea of buying at this point and am not even looking at selling set ups.

Please let us know what you think in the comments below

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