Gold Price Forecast – Gold markets gap higher to kick off the week

Gold markets gapped higher but have then pulled back significantly bearish pressure in a market that is trying to come to terms with the lot of negative issues out there that are just waiting to jump into the fray.
Christopher Lewis
Gold daily chart, September 17, 2019

Gold markets gapped higher to kick off the week, but then pulled back to fill that gap. At this point, the $1500 level should offer a significant amount of support based upon the psychology of the round figure, and then of course we have the recent action there, and of course the 50 day EMA underneath. All things being equal we are at the bottom of the overall consolidation area, and if we can break above the candle stick of Thursday trading, the market looks likely to go back towards the $1560.

Gold Prices Video 17.09.19

If we were to turn on a break down below the 50 day EMA, the market will switch down to the $1450 level where we see even more support. Ultimately, I’m looking for some type of supportive action where we can take advantage of some value. If we were to break down below the $1550 level, then the market could break down significantly from there. All things being equal, it is a market that should continue to go higher based upon the fact that we have a lot of concerns when it comes to global growth, geopolitical tensions which obviously have flared up, and then the overall trend should continue to be adhered to, as it has seen so much in the way of bullish momentum. Quite frankly, a pullback was needed for quite some time and therefore this move should not have been much of a surprise. With that in mind I am looking for value in this market.

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