Gold Price Forecast – Gold markets continue to hang toughGold markets have broken above the 50 EMA on the daily chart as you can see, and it is starting to turn higher. This is a bullish sign but I also see a significant amount of resistance at the $1250 level. That being said, I recognize that there are a lot of reasons to be nervous in the world, and that almost always puts a bit of a bid in the gold market.
Gold markets continue to be very noisy overall, as we have various fears around the world driving precious metals in both directions. Lately though, we have seen a nice grind higher after an explosive move, and with the EMA turning higher, I think longer-term traders are getting involved. With that in mind, I look at the $1225 level as support, and I like the idea of buying dips as they occur.
If we can break above the $1250 level, then it’s likely that we will go looking towards $1275, followed by the $1300 level next. This is a market that has been trying to form a base for some time, and it now looks as if the longer-term money is starting to flow back into the gold market. In fact, I can make a bit of a “rounded bottom” pattern if we get just a little bit higher.
I would expect the 50 EMA to offer support, just as I would expect the $1200 level offer support. I am bullish of gold, simply because nobody really knows how so many things are going to play out. With the type of noise that’s out there, I would start out with a low leverage though, simply because you can have the trade goes against you suddenly. I would build up as it becomes more profitable.