Gold Price Forecast – Gold Markets Find Support

Gold markets bounced slightly during the trading session on Wednesday, as we are at the bottom of the consolidation area. With that being the case, the market looks like it is going to see more of the same going forward.
Christopher Lewis
Gold daily chart, November 07, 2019

Gold markets have rallied slightly during the trading session on Wednesday, as we continue to see a lot of volatility around the world. At this point, the central banks look likely to keep their monetary policy rather loose, and that should help gold. Beyond that, we also have a lot of concerns geopolitically, so that of course could put a bit of a boost in the gold market as well. Quite frankly, it seems as if we are one bad headline away from seeing gold spike again. Ultimately, this is a market that seems to have a lot of support at the $1475 level, and then again at the $1450 level, which had been the top of a massive ascending triangle.

Gold Price Video 07.11.19

All things being equal, gold market should continue to go higher based upon macro events and tailwinds, not the least of which would be central banks purchasing gold. I like the idea of buying small bits and pieces and trading back and forth until we can break the highs from the previous week, when I would anticipate the market going towards the $1540 level, followed by the $1560 level, which were the last couple of highs.

If we were to break down below the $1450 level, then we will start to threaten the 200 day EMA which would be crucial. A breakdown below that level would be massive, and probably open up the trapdoor for more selling. At this point though, it looks very much like the buyers are willing to step in and try to support this market, despite the ugly candlestick from the Tuesday session.

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