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Gold Price Forecast – Gold Markets Pulled Back Slightly To Kick Off Week

By:
Christopher Lewis
Updated: Nov 25, 2019, 17:01 UTC

Gold markets pulled back just a bit to kick off the week during Monday trading, but still find plenty of support underneath that should continue to cause a bit of a bounce. All things being equal, gold is at a major area that needs to hold to keep the uptrend intact.

Gold daily chart, November 26, 2019

Gold markets gapped a little bit lower to kick off the week, and then drove down towards the $1450 level. This is an area that was previous resistance in the form of an ascending triangle, and that of course is an area that could cause a bit of “market memory”, so therefore it’s likely that the market participants will continue to see a lot of volatility. At this point, that area needs to hold and if it does not it would be a very negative turn of events to say the least. At this point, the market is likely to continue to be very noisy, and that something that should be paid attention to, and therefore you should be a bit cautious about position size. Given enough time though, the market should bounce from this area in theory, but at this point if we were to break down below there you then need to start paying attention to the 200 day EMA underneath.

Gold Price Video 26.11.19

If the 200 day EMA underneath gets broken, that would be a horrible turn of events for gold, so having said that it’s likely that the market would unwind quite drastically. If it does, that could send the market down towards the $1400 level almost immediately, and then down to the $1350 level next. That being said, I still believe that there is a lot of support underneath, and quite frankly all we need is some type of bad news to kick it off.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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