Gold Price Forecast – Gold markets continue to meander

Gold markets went back and forth during the trading session on Tuesday, as we are caught between a couple of major levels. The $1300 level above is major resistance, and of course is psychologically important. If we can break above that level, then the market could go to the $1400 level but I also believe that there would be interested in selling near the $1325 level, and every $25 until we get to the $1400 handle.

Gold Technical Analysis Video 16.01.19

The top of the up trending channel is just below, just as the 20 day EMA is. That being the case, I think that the market continues to be very noisy but I think that the gold market is essentially trying to wait until we get more clarity when it comes to the Federal Reserve and its interest rate outlook for 2019. If we do break down below the 20 day EMA, then I think the market probably goes down to the 50 day EMA, pictured in red on the chart.

The $1250 level underneath is massive support as well, but I think as long as the Federal Reserve looks like it’s loosening its grip when it comes to interest rate hikes, market participants will continue to sell the US dollar, and perhaps pick up gold. Ultimately, I think that this is a market that continues to see a lot of headwinds in both directions, so I think at this point it’s going to continue to be difficult but I do think that eventually we get a daily close above the $1300 level that should send this market much higher.