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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

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