Gold Price Forecast – Gold markets continue to grind sideways

Gold markets went back and forth during the trading session on Thursday, as we continue to grind overall, trying to figure out where to go next. Ultimately, the market is very sensitive to the US dollar, the Federal Reserve, and of course geopolitical concerns.
Christopher Lewis
Gold daily chart, July 12, 2019

Gold markets of course are very sensitive to the US dollar, and with the Federal Reserve looking to cut interest rates soon it makes sense that Gold would rally longer-term. That doesn’t mean that we can go straight up in the air, but certainly there is quite a bit of buying pressure underneath. I look at pullbacks as a buying opportunity at a market that is very strong. Ultimately, I think that the market continues to be extraordinarily noisy and difficult to deal with, but keep in mind that when people are not sure about the geopolitical situation around the world, they will often look to gold to protect wealth. Beyond that, the US dollar falling due to the Federal Reserve will also cause quite a few problems and therefore bullish pressure in the yellow metal as well.

Gold Price Predictions Video 12.07.19

Looking at the chart, I think that the $1390 level will be massive support, and therefore a break down below there would of course mean something. We could be looking at a move down to the $1350 level where there is a bit of a gap, and of course the 50 day exponential moving average. Beyond that, we also have the 50% Fibonacci retracement level as well, so I think it’s only a matter time before the buyers return. The question is whether or not it’s here, or if it’s lower. I prefer lower because it gives us an opportunity to take advantage of value, but obviously you play the market that you are given, not play the market you want.

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