Gold Price Forecast – Gold markets drift lower

Gold markets fell slightly during the trading session after initially trying to rally on Tuesday, as we reached towards the $1325 handle. With Jerome Powell speaking in front of Congress over the next couple of days, my suspicion is that Gold will be highly sensitive to the value of the greenback, which he of course could influence greatly. In general, I believe that there are plenty of reasons to think that buyers underneath, not only considering that we have a US dollar that looks like it is softening, but we also have plenty of technical levels underneath.

Gold Outlook Video 27.02.19

The uptrend line underneath and the 50 day EMA at the $1300 level suggests that we will have plenty of buyers looking to pick up value underneath. The $1300 level should be massive support as well, as we have seen a significant bounce from their previously. Beyond that, it’s a large come around, psychologically important figure.

The $1350 level above has a lot of resistance built in, and of course selling pressure. However, if we can break above that level then I think that the market probably goes another $25 higher. I have noticed that gold tends to move in $25 increments, and therefore when you zoom out to look at the chart, it’s very easy to see buying and selling at these levels. While I am bullish over the longer-term, I suspect that a pullback is probably necessary to finally see higher levels. One thing that is interesting to note is that pullbacks tend to have less volume than moves higher.

Please let us know what you think in the comments below