Gold Price Forecast – Gold markets continue to press resistanceGold markets continue to go sideways as the week has been a bit choppy. However, there are several reasons for me to think that the Gold markets will continue to go higher, and the fact that we could not break out to me suggests that we are trying to build up pressure.
Just below current trading is the top of the uptrend channel that we had been in, and that of course the 20 day EMA, pictured in green on my chart. Just above, we have the $1300 level, an area that of course has a certain amount of psychological importance. Overall, you could even make an argument for a bit of a symmetrical triangle that we are trying to break out of.
Gold Price Forecast Video 14.01.19
At this point, I don’t have any interest in shorting Gold and I believe it is only a matter of time before we find buyers underneath. I anticipate that the $1250 level should be massive support, but to be honest I would be a bit surprised to see this market reach that level, as it would be a major turnaround. Beyond that, the Federal Reserve has stepped away from its hawkish stance as of late, and that of course does push the US dollar lower in general, and by extension pushes the Gold markets higher.
I think if we can get a daily close above the $1300 level, then the market is likely to continue to go towards the $1350 level, and then possibly even the $1400 level which is my longer-term target based upon a large consolidation area. I don’t believe in shorting this market, at least not yet and would only start to rethink the entire position once we get a daily close below the $1250 level.