Gold Price Forecast – Gold markets looking for buyersGold markets went back and forth during the trading session on Monday as traders came back to work. We are currently testing around the 50 day EMA, and more importantly the $1300 level.
Gold markets went back and forth during the trading session on Monday, as we have come back to work from the weekend. At this is going to be a very interesting market because the US dollar is running into some significant resistance. The US Dollar Index continues to hover around the 97 handle, which has been massive resistance.
Gold Prices Video 02.04.19
Looking at this chart I believe that there is a bit of a “floor” at the $1280 level, which needs to hold for gold to find its footing longer term. If it breaks down, we would be testing the 200 day EMA, and then perhaps even the $1250 level. Ultimately, this is a market that will pay much attention to the US dollar, and as a result I think that the EUR/USD pair should be paid attention to as well as we are sitting at the 1.12 level. As long as that holds, there is a chance that Gold has buying opportunities presenting.
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If the EUR/USD pair breaks down significantly below the 1.12 level, then the Gold markets will fall right along with it. Quite frankly, I think it’s very likely that we have more of an upward movement in both the EUR/USD and gold market, which does tend to move in the same general direction most of the time. Looking at the chart, I suspect that the market will go looking towards $1325 level relatively soon, but we need some type of catalyst to send things higher, or maybe more specifically to send the US dollar lower overall.
Please let us know what you think in the comments below