Gold Price Forecast – Gold Markets Crater on Friday

Gold markets initially tried to rally during the trading session on Friday, but then fell rather hard to test the major uptrend line. We are in a huge wedge, and if we were to break down below this trendline it’s likely that the market will probably go looking towards the $1450 level almost immediately. Below there, things get quite a bit more difficult.
Christopher Lewis
Gold daily chart, October 14, 2019

Gold markets initially tried to rally during the trading session on Friday, but then broke down rather significantly to slice through the 50 day EMA and test a major trendline underneath. This uptrend line of course is a crucial support level based upon longer-term trader outlook, so that should be paid quite a bit of attention to. With that in mind I anticipate a bounce, but I’m not looking for anything major unless of course there is a huge letdown when it comes to the US/China trade situation. It would not be surprising, so that is something that should be kept in the back of your mind.

Gold Price Forecast Video 14.10.19

However, if they do come to terms and work things out, gold markets could fall apart as it will be less of a “safety trade” out there and of course the Federal Reserve may or may not feel the need to become accommodative. If that is the case, then gold will probably fall apart as one or two of the major reasons for the market rallying will have suddenly dried up. Because of this, the next couple of days could be crucial, but at this point in time it’s very likely that not much will happen, at least as far as the US/China trade deal is concerned. There will probably be some slightly consolatory move, but at the end of the day I don’t think much will change.

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