Gold Price Forecast – Gold markets fall but find buyersGold markets fell rather hard during the trading session on Thursday as the US dollar picked up a bit of strength. However, by the time the dust settled we had found plenty of buyers underneath willing to pick up the market.
Gold markets initially tried to rally after gapping lower on Thursday, but then fell rather hard. After that, we bounced a bit as the $1280 level has offered significant support. The 200 day EMA underneath continues offer support as well, so it’s very likely that we continue to bounce around between now and the jobs number that comes out on Friday. That will move the value of the US dollar, which of course will move the value of gold. Gold markets obviously continue to be highly influenced by the greenback, so Friday could be rather crucial.
Gold Outlook Video 05.04.19
If we break down below the 200 day EMA, at the $1275 level, then the market could drop to the $1250 level, and then eventually the $1225 level. To the upside, if we can break above the 50 day EMA which is at the $1300 level, then the market could open up the door to the $1325 level after that as it has been important more than once. With that being the case, I think that we have some very clear levels to pay attention to, but in the short term it’s very likely that we are going to continue to bounce around in the consolidation area between the two moving averages I have marked on the chart. That being said, breaking one of those levels tells me which way to play this market from a longer-term standpoint. Friday will be choppy and volatile, but has the potential to be somewhat decisive.
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