Gold Price Forecast – Gold Markets Pullback

Gold markets pulled back a bit during the trading session on Thursday, showing that the market cannot hang on to any significant rally. At this point, the market looks as if it needs to hold this general vicinity or face serious trouble.
Christopher Lewis
Gold daily chart, November 08, 2019

Gold markets have fallen a bit during the trading session on Thursday, reaching towards the $1475 level. This is an area that should offer support, but if it does not it’s likely that we will then face support at the $1450 level next. All things being equal, this is a market that should attract a certain amount of buying pressure eventually, and overall, I believe that the $1450 level is going to be crucial. Underneath there, and approaching very rapidly is the 200 day EMA, which is an indicator that a lot of traders will pay attention to determine the overall trend. That being said, a break down below there could wipe out the entire bullish run that we have seen gold form.

Price of Gold Video 08.11.19

With the Federal Reserve stepping to the sidelines, this is a major change in attitude for the central bank, so it’s possible that the markets are offering some type of selling opportunity, although I don’t like selling into all of this support. The geopolitical issues are still out there and of course several central banks around the world continue to loosen monetary policy so therefore if you’re looking to buy gold you may choose to do so again something besides US dollar. For example, you may find gold more attractive in terms of Japanese yen or Euros, as both of those currencies have been losing a bit of strength. The biggest problem with this chart is that the US dollar is attached to it. At this point though, we are still technically in an uptrend so I’m not willing to step out and start shorting.

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