Gold Price Forecast – Gold markets gapped lower

Gold markets gapped lower to kick off the week, jumping below the $1400 level. However, we are starting to see buyers pick this market back up, so it’s likely that we are trying to fill the massive gap.
Christopher Lewis
Gold daily chart, July 02, 2019

Gold markets gapped lower to kick off the week, breaking below the $1400 level immediately. Perhaps this was in reaction to the G 20 meeting between the United States and China, but I think at this point traders is starting to doubt whether or not anything was actually solved. That should make Gold very attractive, and therefore the fact that we are starting to make a bit of a hammer is a very good sign. To the downside, if we were to break down below the bottom of the hammer, that would be a very negative sign and probably send this market down towards $1375, perhaps even down to $1350 after that.

Gold Price Forecast Video 02.07.19

Ultimately, the this is a market that is in and uptrend, so I do prefer filling the gap and perhaps even breaking above it eventually. If we do break above the clothes on Friday that would be a very bullish sign. Otherwise, I’m waiting to see some type of supportive candle at one of the $25 increments below to get involved. Remember, there is a gap below at the $1350 level that has yet to be filled, so falling from here could just simply fulfill that obligation before turning right back around. That should offer plenty of value at this point, so I would be all over that trade if we can get it.

Remember that this week could be a bit strange, due to the Fourth of July holiday and of course the jobs number on Friday. All things being equal though this is still a bullish market even with the gap.

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
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.
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.