Gold Price Forecast – Gold markets continue to grind sideways

Gold markets rallied slightly during the trading session on Friday but quite frankly it’s just more of the same. What is particularly telling about the gold market is the weekly chart, not the daily one.
Christopher Lewis
Gold daily chart, July 15, 2019

Gold markets have gone sideways during the day on Friday in relatively quiet trading, and that in and of itself isn’t exactly remarkable. However, once you start looking at the higher time frames, you recognize that something is going on in gold. The weekly chart has three shooting Star candlesticks in a row and that of course is extraordinarily negative. At this point, something must be done and we should see some type of momentum. If we can break above the top of the shooting stars, that is an extraordinarily bullish sign, as breaking above the $1450 level will send this market much higher.

Gold Prices Video 15.07.19

However, if we break down below the $1380 level, the market probably drops down to the $1350 level, which of course is a major round figure and of course the scene of both a gap and the 50 day EMA. Furthermore, it’s the 50% Fibonacci retracement level, so I do think that it is likely to find plenty of buyers and I would be more than willing to get involved at that level.

Don’t get me wrong, I’m not looking to sell gold I just recognize that there is danger to the downside. That danger of course offers opportunity for those who are willing to wait for signs of support. Overall, I think that the market is going to continue to show plenty of choppiness, but at this point I think it’s only a matter of time before we get some type of directionality. I do believe in the upside but I also believe in value even more.

Please let us know what you think in the comments below

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