Gold Price Forecast – Gold markets find buyers underneath

Gold markets initially fell during the trading session on Friday but then recovered after the jobs figure was out of the way. By doing so, we ended up forming a nice-looking hammer which sits right next to another hammer from the Thursday session. It now looks as if the $1280 level underneath is going to act as significant support still, but obviously the $1300 level above would cause a bit of psychological resistance as well. If we can break above that level, then I think it opens the door to the $1325 level, but I suspect we will probably see a pullback before that actually happens.

Gold Price Video 08.04.19

That pullback for me is going to be a buying opportunity as we have seen so much fight from just below, and it’s not until we break down below the blue 200 day EMA on the chart that I would even remotely consider shorting Gold. I would need to see the EUR/USD pair slice through the 1.12 level handily to do so as well, because then I think it would be based upon a strengthening US dollar. After all, central banks around the world continue to be very loose with their monetary policy so that should help precious metals in general, with gold being the main primary market that people will use to fight against currency devaluation. To the upside, if we can break above the $1325 level it would open the door to the $1350 level which was the most recent high.

Please let us know what you think in the comments below