Gold Price Forecast – Gold markets pulled back looking for supportGold markets pulled back a little bit during the trading session on Tuesday, as we continue to try to build up momentum to the upside and break above the major resistance level at $1250.
Gold markets continue to be very bullish overall as of late, and it looks as if we are trying to build up the necessary momentum to clear the $1250 level. If we can break above that level, then the market is likely to continue going higher, initially to the $1275 level, and then eventually the $1300 level after that. This is a market that continues to be very noisy, but I think there is an underlying bullish pressure as the US dollar has gotten a bit stretched, and of course beyond that it’s likely that there is a bit of a safe haven bit when it comes to precious metals as well.
Gold Outlook Midday Video 30.10.18
When I look at this chart, you can see that we have exploded to the upside and above the downtrend line that had been such a major force in this market. This is a market that has been sideways for a while, with the $1200 level being a bit of a floor in the market, while there is major resistance at the $1400 level. With the way Gold has been sold off recently, I think we are simply trying to return to those lofty levels as we have broken a medium-term downtrend, and most certainly got oversold on longer-term charts. Whether we can break above the $1400 level of course is a completely different question, but at this point I think there is more danger to the upside than the down, especially if we can get a bit of a softening of the US dollar strength that we have seen so much of lately.