Gold Price Forecast – Gold markets dip but find buyers

Gold markets gapped a little bit to kick off the trading session, pulled back to dip rather significantly, and then turned right back around to recapture those losses. That being the case, and the fact that we have recently broken out, things look rather bullish.
Christopher Lewis
Gold daily chart, August 07, 2019

Gold markets gapped a little bit higher during the trading session on Tuesday, but then broke down significantly to reach towards the original breakout point that I have drawn on the chart. The market has also found plenty of support in that area that offer a clue as to the overall upward proclivity in this market. That being said, the $1500 level above is also a massive in its importance and of course will attract a lot of attention. All things being equal, I think that the market will continue to grind towards that level, but I think that the market will have a huge fight on its hands in that region.

Price of Gold Video 07.08.19

Looking at this chart, there is a massive amount of support extending all the way down to the $1400 level, so it’s not until we break down below there that I would be concerned about the Gold markets in general. I think that with the central banks around the world looking to cut interest rates and of course all of the uncertainty around the world with geopolitical and economic concerns, it makes quite a bit of sense that gold should continue to attract a lot of buying pressure.

There is a bit of a gap from a couple of days ago near the $1435 level, so I think that is more or less the “floor” in the market. The 50 day EMA, which is pictured in red on this chart, it suggests to me that there is plenty of momentum, and therefore it’s likely that plenty of value hunters will be involved in this market on dips. I have no interest in shorting.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.