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Gold Price Forecast – Gold markets explode to the upside

By:
Christopher Lewis
Updated: Jan 25, 2019, 18:35 GMT+00:00

Gold markets exploded to the upside during the trading session on Friday, slamming into the $1300 region again. This is an area that has been massive resistance, but if we can close near this level, that’s a sign that we are eventually more than likely going to break out.

Gold daily chart, January 28, 2019

Gold markets reached towards the $1300 level during the trading session on Friday, which is a very bullish sign considering just how large the candlestick is. If the market can break above the $1300 level, we will go much higher. This certainly looks as if it is a major attempt to do so but heading into the weekend it would not surprise me at all to see this market fail at the $1300 level as a lot of traders probably won’t want to carry a lot of risk into the weekend. However, I do think that it’s only a matter time before we break out, as you have read me talk about more than once. This is a very strong sign, and I do think that ultimately Gold takes off.

Gold Prices Video 28.01.19

For the Monday session, don’t be surprised at all if we get a bit of a pullback, perhaps in an attempt to build up the necessary momentum. However, if we close the week above the $1300 level, it’s likely that we see buyers jump in immediately on Monday morning. Below, I see the $1280 level as massive support, especially considering that we had just formed three hammers. To be honest, I can’t remember the last time that I had seen three hammers form in a row that did not kick off a bullish move. In fact, I may have never seen that pattern fail. If it did, that would have been an extraordinarily negative sign. Obviously, the buyers have taken control.

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

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