Gold Price Forecast – Gold markets hit major resistance level

Gold markets rallied significantly during the trading session on Friday, but have run into a bit of trouble at the psychologically important $1350 level, which also has a previous high sitting right there as well.
Christopher Lewis
Gold daily chart, June 10, 2019

Gold markets went back and forth during the trading session on Friday, after a less than stellar jobs number out of the United States. By missing as badly as we did, the US dollar got hammered and of course that help gold. The question now is whether or not gold can continue to go higher, as we are sitting right at a major resistance barrier in the form of the $1350 level

Gold Analysis Video 10.06.19

If we can break above the highs of the day, then I think the market continues to go much higher. At that point, I would be looking for a move towards the $1375 level, and then possibly the $1400 level after that. The alternate scenario of course is that we break down below the lows of the trading session on Friday, and then we could go down to the $1325 level and then possibly the $1300 level after that.

This is a market that has gotten a bit overextended, so it really wouldn’t surprise me at all to see this market pull back. That being said, you need to see significant selling pressure in order to start shorting. You can’t simply just short this market because it’s at a major level, because quite frankly levels get broken occasionally.

Pay attention to the US dollar, if it continues to weaken against other currencies such as the Euro and the British pound, then we will see Gold markets continue to strengthen. If the opposite happens, then the Gold markets will suffer at the hands of a stronger greenback.

Please let us know what you think in the comments below

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