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Gold Price Forecast – Gold markets pulled back

Gold markets continue to go back and forth overall as we pull back during the trading session on Thursday. We are currently trapped between two major areas, and I think we are trying to build up enough momentum to finally make a significant move.
Christopher Lewis
Gold daily chart, January 18, 2019

Gold markets continue to go back and forth, as Thursday was more of the same. The $1300 level above continues offer major resistance while the previous uptrend in channel is just below, and the top of that channel should offer support. I believe that the 20 day EMA should also offer support, so I think ultimately we are looking at a market that is essentially trapped. Short-term traders will continue to flock towards the Gold markets, as it is a nice range bound trading opportunity.

Gold Outlook Video 18.01.19

Even if we do break down a bit from here though, I think the 20 day EMA and then eventually the red 50 day EMA on the chart will offer support. On the other side of that trade is a break above the $1300 level which of course would be a much more significant move. At that point, we could be looking at a move towards the $1400 level on the longer-term charts. Keep in mind that the US dollar will have its influence on gold, as when the US dollar rallies, it tends to be rather negative for gold. Alternately, if the US dollar falls apart, that should send Gold markets higher. I think we continue to see a lot of noise in the markets, and therefore there are a lot of questions as to where we could go next. Given enough time, I believe that we will continue to see back and forth short-term opportunities followed by an explosion to the upside as this has been a major barrier. However, keep in mind that we may need to pull back initially.

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