Gold Price Forecast – Gold markets find support on Monday

Gold markets bounced a bit during the trading session on Monday, as the $1325 level has offered support. The uptrend line underneath of course is something that traders will be paying attention to as well.
Christopher Lewis
Gold daily chart, February 26, 2019

Gold markets pulled back a little bit during the trading session on Monday, reaching down towards the $1325 level. This is a market that looks to be very well supported underneath, and with Jerome Powell speaking in front of Congress this week, it’s very likely that the chairman will try to talk down the value of the US dollar and reiterate the dovish stance of the Federal Reserve has recently taken. If that’s going to be the case, then gold should rally due to that very fact.

Gold Analysis Video 26.02.19

The uptrend line underneath should continue to support this market, and I believe that there is massive support all the way down to the $1300 level, where the 50 day EMA is sitting just below, so it’s very likely that the technical traders will be looking to pick up a little bit of gold down at that area as well.

If we were to break down below the $1300 level, then we could go down to the $1275 level next, but at this point I think that is very unlikely to happen anytime soon. To the upside, the $1350 level above is massive resistance, and if we can break above that then we can open the door to the $1400 level which is my longer-term target. That doesn’t mean that it’s going to be easy to get up there, but short-term pullbacks should offer plenty of buying opportunities. In general, this is a market that continues to favor the upside, but at this point it’s clear that the volatility will continue.

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