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Gold Price Forecast – Gold markets finding support

By:
Christopher Lewis
Updated: Mar 7, 2019, 17:16 UTC

Gold markets pulled back a bit during the trading session on Thursday as the US dollar strengthened during the ECB press conference. However, we are at a major area of support and we have seen a bit of a bounce to confirm the interest in the yellow metal.

Gold daily chart, March 08, 2019

Gold markets pulled back initially during trading on Thursday, as we have seen a bit of volatility due to the ECB press conference and Mario Draghi talking about extra simulative matters in the European Union, as well as refraining from any hikes until at least the end of the year. With that, the US dollar rallied rather swiftly. However, the EUR/USD pair does have a significant amount of support near the 1.12 level that has held, and that of course provided the relief that markets like gold needed.

Gold Outlook Video 08.03.19

All things being equal, it looks as if the $1275 level continues to be massive support. Beyond that, it is also the 50% Fibonacci retracement level from the move higher. Yes, we have recently broken through a major downtrend line, but it is obvious to me that we are starting to see a bit of a pushback, so I think after the jobs number on Friday we should get a little bit more clarity when it comes to the gold market, or maybe more specifically the US dollar to course has its own influence on this market. Expect a choppy and erratic 24 hours, but by the end of the trading session on Friday, we should have much more clarity as to where we are going next. I would be on the sidelines until Monday morning because of this and all of the risks that could be associated with what could be an explosive move.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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