Gold Price Forecast – Gold markets continue to fight

Gold markets at least as far as risk appetite is concerned. Ultimately, you should pay attention to the US dollar in general, as the greenback has a major effect on how this market plays out. I believe that the $1280 level underneath continues to be massive support, as shown on the chart. Not only do I have a horizontal trend line drawn on the chart, but you can see that the 200 day EMA is just below that level as well. With that being the case, it makes sense that we will continue to see a lot of interest in gold down at those levels.

Gold Technical Analysis Video 03.04.19

Because of the shape of the candle stick for the Tuesday session, it looks as if we are slowing down the descent from higher levels, and that should mean that we turn around sometime soon. I would be cautious about buying gold though, and would only do so if the greenback softens, most notably against the Euro. Overall, this is the de facto standard for the US dollar if you don’t have access to the US Dollar Index. We are currently trading at the 1.12 level, an area that needs to hold as support if the US dollar is going to soften enough to lift commodities and other markets. If the US dollar strengthens, we will more than likely break down below the 200 day EMA in this market and go looking towards the $1250 level.

Please let us know what you think in the comments below