Gold Price Forecast – Gold markets continue to face resistance aboveGold markets rallied a bit during the trading session on Monday, reaching towards the $1300 level above, an area that of course offers a bit of resistance. From both a structural and psychological level, the $1300 level should offer resistance.
Gold markets continue to try to press the $1300 level but failed as we have turned over to form a bit of a shooting star for the day. The 20 day EMA and the top of the previous uptrend in channel are both below, so I think there is an opportunity for buyers to come back in, but obviously we have some work to do. The $1300 level being broken to the upside opens the door to the top of the longer-term consolidation area, which is the $1400 region. It doesn’t mean that we are going to go straight there, and it is going to take some time to get there.
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To the downside, I think the $1250 level is massive support, and I think it’s very difficult to imagine a scenario where we break down below there. We would need to see significant dollar strength, which I think we are starting to see the US dollar rollover in general, so it does make sense that Gold would rally. Jerome Powell has recently suggested that the Federal Reserve is going to be a bit more hesitant to raise interest rates, and therefore it makes a lot of sense that the metals markets will get a bit of a boost. Unless there is some type of major turnaround with the greenback, I don’t see any opportunity for gold to break down significantly. I think dips continues offer value, and that’s exactly what you should be looking for at this point.