Gold Price Forecast – Gold markets pull back

Gold markets pulled back significantly during the trading session on Monday, as the $1325 level is massive resistance. That being the case, it makes no surprise that we have pulled back from here as we not only hit a major resistance level, but also had gotten a bit ahead of ourselves. We did go parabolic over the last couple of days, and therefore a lot of traders are looking for lower prices to get involved.

Gold Analysis Video 05.02.19

The 20 day EMA underneath, pictured in green on the chart, is an area where I would expect to see a lot of buying pressure. Not only do we have the 20 day EMA which has worked out quite well for the last couple of months, but we also have the psychologically important $1300 level. At this point, I think dips will continue to be bought, and I think that the market will eventually break out to the upside. If we can clear the shooting star from the Thursday candle, then it’s a good sign that the buyers have step back in and really started to push to the upside. At this point though, I think that finding value is probably the better path forward.

I have no interest in shorting this market, but I do recognize that if we were to break down below the $1280 level, that would be very negative, and could have me looking at this market in a different light, as it would be such a significant turn of events.

Please let us know what you think in the comments below