Gold Price Forecast – Gold Markets Quiet On MondayGold markets rallied slightly during the trading session on Monday, showing signs of stability after a major selloff on Friday. That being said, the market is likely to see massive support underneath though based upon structure.
Gold markets continue to see some negativity, but at this point we are getting relatively close to a major support barrier in the form of the $1450 level. It is also the top of the previous ascending triangle, so it should end up being support based upon market memory more than anything else. Ultimately, this is a market that should continue to show a lot of choppy behavior as risk appetite is all over the place. Remember that the US/China trade situation seems to be driving almost everything at this point, so the better that goes, the worse gold will do. Obviously, the exact opposite is true as well.
Gold Prices Video 10.12.19
Looking at this chart, the $1450 level simply must hold, because if it doesn’t then the next thing, we will do is test the 200 day EMA. For what it’s worth, silver is already doing that and it’s likely that we will have a sympathy move in both of these markets towards each other. They are moving solely on risk appetite and gold of course has been beaten down as the Federal Reserve has stepped away from cutting interest rates. However, they aren’t necessarily going to be raising them either so there isn’t much of a catalyst from the Federal Reserve currently.
That being said, the market is going to continue to move on the most recent headlines so keeping a relatively small position will probably be the smartest thing you can do, especially as we are at the end of the year and volatility in more importantly volume will be all over the place.
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