Gold Price Forecast – Gold markets find support on Friday

Gold markets were breaking down significantly during the day on Friday before the US dollar got sold off as the University of Michigan Consumer Sentiment numbers fell, and of course the ISM Manufacturing PMI numbers did the same thing. As the dollar fell apart, it makes sense that Gold started to pick up. Looking at this chart, it appears that the $1300 level has shown itself to be rather important.

Gold Price Forecast Video 04.03.19

The uptrend line has been broken, but the question is whether or not we are entering some type of consolidation for a while. After all, the $1300 level will have a lot of interest attached to it, but silver could be telling us something. Silver and gold typically move together as you know, and silver is making shallow rallies at this point, meaning that the highs aren’t quite as extended as they once were. If precious metals are starting to rollover, silver will probably be the first place you see it as it is typically weaker anyway.

I suspect that we have a short-term bounce ahead of us, but unless we can turn around and break above the $1350 level, you would have to think that perhaps the overall strength of gold is starting to change. If we break down below the $1300 level, then I think there is a lot of buyers closer near the $1275 level after that. That features a 200 day EMA which should of course attract a lot of attention as well.

Please let us know what you think in the comments below