Gold Price Forecast – Gold markets pulled back to find support

Gold markets continue to be very volatile, but most importantly have found buyers underneath the continue to try to lift the market overall. However, there is a significant resistance barrier just above to deal with.
Christopher Lewis
Gold daily chart, January 09, 2019

Gold markets continue to be very choppy, after breaking out of a major uptrend channel. By doing so, this shows that the market is probably going to continue to be positive overall, but we are going to have the occasional back and forth like we have just seen. The 20 day EMA is just below, and that should attract a certain amount of interest. This is a market that continues to find reasons to go higher, perhaps in a bid for safety, perhaps due to the Federal Reserve sounding a little less hawkish than previously thought. Now that the Federal Reserve is becoming more “data dependent”, it’s likely that we will continue to see a lot of noise in this market. However, I think that the break out that we have recently seen is in fact something that you should be paying attention to, because it was crucial.

Gold Outlook Video 09.01.19

The $1300 level above of course is going to cause a certain amount of interest, but I think it will be temporary at best. If we can break above there, then the market should go looking towards the $1400 level, an area that was the top of the longer-term consolidation. I fully anticipate to see that move, but you probably need to see the US dollar taken a bit of a bashing to facilitate this trade. For what it’s worth, pay attention to the EUR/USD pair, because it looks almost identical to this chart, both forming a bit of a “rounded bottom”, which of course is a bullish sign.

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