Gold Price Forecast – Gold markets explode

Gold markets gapped higher to kick off the trading session on Thursday, breaking above the top of the shooting star that formed on Wednesday after the Federal Reserve did everything it could do to crush the US dollar.
Christopher Lewis
Gold daily chart, June 21, 2019

Gold markets exploded to the upside during the trading session, reaching towards the $1400 level during the European session. At this point, it’s very likely that we are going to see a pullback, but I think there is plenty of support underneath that should continue to offer plenty of buying opportunities. With the Federal Reserve looking into soften its monetary policy, right along with the European Central Bank, it makes sense that precious metals should continue to rally over the longer-term. That being said, looking for value is probably the way to go going forward.

Price of Gold Video 21.06.19

I like buying short-term pullbacks as gold has plenty of juice underneath the push higher, but we had gotten a bit ahead of ourselves. The $1400 level will offer significant resistance, and as a result it’s very unlikely that we can continue to go straight up in the air. Ultimately, the $1350 level should be the floor going forward unless of course the Federal Reserve changes its policy. At that being the case, it’s very likely that the gold market should continue to go higher in reaching towards the $1500 level. There is plenty of noise underneath the $1350 level to show plenty of buying interest. As long as the US dollar continues to soften up, gold markets will as well.

Ultimately, this is a market that’s got ahead of itself again, but that gives us an opportunity to know the direction and simply wait for short-term bounces to take advantage of. Gold very likely will be heading towards $1500 given enough time.

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