Gold Price Forecast – Gold markets gap higher but then fail

Gold markets have gapped higher during the trading session on Friday, shooting towards the $1450 level. That’s an area that should be massive resistance, but I do think that we break out above it given enough time.
Christopher Lewis
Gold daily chart, July 22, 2019

Gold markets gapped higher to kick off the trading session on Friday, but then found a lot of selling pressure just above the $1450 level. By doing so, the market has fallen to fill the gap, as the market has got ahead of itself, just as silver has. The Federal Reserve is looking to cut interest rates and that should continue to lift precious metals. Ultimately, gold is a significant protector against low interest rates and more importantly a falling US dollar. This is a market that looks likely to break out given enough time so I do think that buying dips makes quite a bit of sense. However, heading into the weekend it also makes just as much sense to not carry risk into the closed hours.

Gold Price Forecast Video 22.07.19

I believe that there is support not only at the $1425 level but also done at the $1400 level, down to the $1390 level. There are plenty of buying opportunities underneath so I’m looking for signs of support on these pullbacks. Supportive candles are being bought. I think that gold eventually breaks towards the $1500 level, and therefore I believe that plenty of longer-term traders are looking at that figure as well as it is a large, round, psychologically significant figure. I think given enough time we probably break above there as well. This is a market that has shown quite a bit of volatility but most certainly a strong buying pressure. I have absolutely no interest whatsoever in trying to short gold, because it is obviously in a bullish run.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US