Gold Price Forecast – Gold markets looking for support

Gold markets fell initially during the trading session on Tuesday but look as if they are trying to find a bit of support at the $1325 level, which is the top of that second major bullish candle from the initial push higher.
Christopher Lewis
Gold daily chart, June 12, 2019

Gold markets fell a bit during the trading session on Tuesday, reaching down towards the $1325 level before bouncing a bit. This is a good sign, and in the short term I think we may see a little bit more buying. However, you should keep an eye on the $1325 level, because if it breaks down then the market is very likely to wipe out the second bullish candle after the breakout above the downtrend line, meaning that we should go to the $1310 level.

Price of Gold Video 12.06.19

However, if we were to hold this level, it’s very likely that we could continue to consolidate, reaching towards the $1350 level. That would be simple consolidation as the market could be entering some type of distribution phase, and as a result the next couple of days could be crucial as to where we go next, and short-term traders may look to both of these levels to go back and forth from. Once we break out of the range, then it’s obvious that the market will probably go another $25 based upon simple technical analysis.

Pay attention to the US dollar, and of course risk appetite. They can play their part in this market as well, because if we get a bit scared, gold gets bought. On the other hand, if the US dollar falls off, sometimes they can live gold as well. There is a lot of moving pieces right now, as the global markets seem to be in complete disarray. That is going to continue to make this a very noisy and erratic marketplace.

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