Gold Price Forecast – Gold markets continue to chop around

Gold markets went back and forth during the trading session on Friday, as we continue to chop around just above the $1500 level. This is a market that has been very bullish, but I do think that we are buyers getting ready to come back in.
Christopher Lewis
Gold daily chart, August 12, 2019
Gold nuggets on black background.

Gold markets have broken out as of late, and then has gone sideways over the last couple of days. Friday wouldn’t have been any different, but that makes sense considering that we are heading into the weekend. Now that we are above the $1500 level it’s obviously a very bullish market. We had recently broken above the top of an ascending triangle and have fulfilled the Price forecast based upon that measurement. Ultimately, pullbacks at this point should offer plenty of support and I do think that a break down below the $1500 level isn’t necessarily a bearish turn of events, although some people will read it as such.

Gold Prices Video 12.08.19

I think the $1450 level offers plenty of support as it was previous resistance, so therefore I like the idea of picking up value as it presents itself. Central banks around the world continue to cut interest rates, with three of them doing so this week. That should continue to prop up the gold market, as interest rates going lower means that the precious metals market should continue to offer plenty of safe haven type movements. I like buying dips, and I like adding to the position so that we can build up our core position. At this point, I have no interest in shorting this market and I recognize that the 50 day EMA is starting to grind towards the $1450 level. With this in mind, I anticipate a couple of days of weakness, and then another round of buying when it comes to precious metals, not just gold.

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