Gold Price Forecast – Gold markets look to stabilize

Gold markets have been rather noisy as of late, breaking down through major support. However, we are yet again at a support region, which I have marked as a box on the chart, centered roughly around the $1275 level. We also have the 200 day EMA underneath, so that of course will offer a significant amount of support as it typically will catch a lot of attention. Looking at this chart, it’s hard to deny that we have broken down through a major support a couple of times already, but the 200 day EMA is going to be crucial, and if it can hold, then we have a chance of going back to the highs. However, if we were to close below that on a daily candle stick, we will probably go looking towards the bottom of the larger consolidation area. That of course is $1200.

Gold Analysis Video 07.03.19

We have been bouncing around between $1200 and $1400 for some time, so those levels must be respected. However, the path forward for gold is probably tied to the Federal Reserve more than anything else. We have a lot of central bank easing going on, so that is typically good for gold and situations as such. If the Federal Reserve remains on the sidelines, that should be a good sign given enough time.

At this point, a bounce seems to be likely, considering that the velocity of selling has most certainly slowed down. However, nothing is guaranteed obviously, so most traders will be looking for an impulsive candle to make their trading decision. To the upside, I suspect that the first target will be $1300, then possibly $1325. To the downside, the $1250 level will be targeted, and then the $1200 level.

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