Gold Price Forecast – Gold markets pull back only to find more buyers

Gold markets pulled back initially during the trading session on Thursday, reaching down towards the $1500 level. That’s an area that is a large, round, psychologically significant figure, so obviously we attracted a lot of buying.
Christopher Lewis
Gold daily chart, August 23, 2019

Gold markets continue to show signs of stability underneath, as the market has pulled back towards the $1500 level on Thursday only to find buyers again. Ultimately, this is a market that should continue to grind to the upside, and I believe that the $1500 level is not only supportive, but I think it extends down to the $1490 level after that. Quite frankly, it’s not until we break down below the $1490 level that I would be concerned, but even then I would only look to buy at lower levels.

Gold Outlook Video 23.08.19

The $1450 level has been previous resistance, so it should now end up being supportive. The 50 day EMA is right in that area, and if you look at the chart you can make out where there was an ascending triangle that broke out at that level as well. In other words, there’s no need to think about shorting Gold, and at the moment it looks as if the $1500 level is massive support, but even if we were to break down below there not only would we find buyers at lower levels, but I suspect we would see even more volume at those levels.

I have absolutely no interest whatsoever in trying to short the gold market, as central bankers around the world continue to put on a dovish face, and it’s likely that will continue to be the way going forward. Bond markets are screaming for lower rates, and therefore those lower rates will probably continue to throw money into the precious metals markets.

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