Gold Price Forecast – Gold markets continue to show signs of resiliency

Gold markets rallied a bit during the trading session on Wednesday, reaching towards the $1500 level as the Americans traded. At this point, we are trying to fill that little bit of a gap just above, and it does look like the overall trend is trying to reassert itself.
Christopher Lewis
Gold daily chart, October 03, 2019

Gold markets have rallied a bit during the trading session on Wednesday, reaching towards the $1500 level. This is an area that continues to be important based upon the fact that it has been significant support in the past, but it also has been recognized as a large, round, psychologically significant figure for the market. With that being the case, and the fact that the massive bearish candle that tested the downtrend line from Monday down from here, I suspect that the $1500 level will continue to be crucial. A move above there will very likely send this market towards the $1540 level.

Gold Price Forecast Video 03.10.19

As we are slicing through the 50 day EMA, it’s likely that buyers are trying to come back into this marketplace, but ultimately it will be very difficult to continue going higher unless we have some type of catalyst. During the Wednesday session the S&P 500 started to sell off rather stringently, so that of course has New York traders jumping into Gold for safety. At this point, it will be interesting to see how this plays out but I think at this point you are probably better served to simply buy dips on short-term charts, as this uptrend continues but obviously there is a lot of work ahead. To the downside, I believe that the $1450 level will essentially be the “floor” of the uptrend and should be defended quite stringently by traders. If it gets broken, then the 200 day EMA will probably be tested.

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