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Christopher Lewis
Gold daily chart, October 23, 2019

Gold markets are currently hovering around the 50-day EMA, an area that of course can cause major issues in both directions. It is a moving average that attracts a lot of attention, and quite frankly makes for good headlines. Longer-term traders do tend to pay attention to it, so looking at that indicator could give you an idea as to where the longer-term trend is going. All things being equal though, I don’t like trying to short this market, because I think there is a significant amount of support underneath and it’s obvious that central banks around the world are going to be cutting interest rates. Given enough time, that should give a bit of a lift to gold.

Gold Price Predictions Video 23.10.19

You could make a downtrend line based upon the recent channel lower, and although it has been a significant pullback, in the big scheme of things it isn’t as big of a deal. The market had gone higher for what seemed like forever, so a little bit of consolidation and then a pullback as traders take profit makes but a bit of sense. At this point, if we can break above the $1500 level that might be the signal to start buying again for the longer-term move. Obviously, the larger numbers like $1500 attract a lot of attention so I would anticipate quite a bit of follow through on a daily close above that level. Until then, it’s probably going to be more or less a grind.

Please let us know what you think in the comments below

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