Gold Price Forecast – Gold markets elevate again on Friday

Gold markets continue to show signs of strength, as we formed a hammer during the Thursday session just above the 20 day EMA, and Friday saw more buying. That being the case, it looks as if we are going to make a serious attempt on major resistance above.
Christopher Lewis
Gold daily chart, February 11, 2019

Gold markets rallied a bit during the day on Friday again, after the hammer that formed on Thursday. The hammer sits just above the 20 day EMA, which of course is reasonably reliable over the last couple of months when it comes to support. However, the other side of this equation is that the $1325 level above has been rather resistive, so I think it’s going to take a lot of momentum to finally break out to the upside. It is because of this that I think there will be several pullbacks on short-term charts, and that value hunters will continue to run the show.

Gold Price Video 11.02.19

Pay attention to the US dollar overall, because I think that is what’s going to drive this market ultimately. The easiest way to look at the dollar as a proxy is either the EUR/USD pair, or perhaps the AUD/USD pair, which also has a high correlation to gold itself. Because of this, I think that we are looking at a situation where a lot of choppy yet bullish momentum is going to be part of the market going forward, as I believe the $1300 level should be rather supportive as well, followed by the $1275 level as well below there. In general, I think that this market should continue to find value hunters on these dips but it’s going to take a lot of momentum building to finally break out above the massive resistance. Once we do, this could snap much higher.

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