Gold Price Forecast – Gold markets rally

Gold markets initially drop down below the 50 day EMA but found support at the familiar $1490 level to break to the upside. With this, it seems to be more of the same in the gold market.
Christopher Lewis
Gold daily chart, October 09, 2019

Gold markets have rallied as the 50 day EMA has offered a significant amount of support. At this point, the market has a massive uptrend line underneath there as well, just as there is a massive downtrend line above that continues to squeeze the market. When a market gets squeezed like this, it does eventually break out, and when it does it tends to be very explosive. With that in mind, the market has been in and uptrend for some time, so it makes sense that we would continue to go to the upside, perhaps breaking as high as the $1540 level, and then the $1560 level.

Gold Outlook Video 09.10.19

Pullbacks at this point should be a nice buying opportunity, but if we were to break down below the uptrend line, then it could change a lot of things. At that point, the market would go looking towards the $1450 level, which was the top of the previous ascending triangle. Below there, then we start to look at the 200 day EMA and at that point I would become somewhat concerned with the overall uptrend although technically as long as we are above the 200 day EMA it is in theory a bullish market.

With the US/China trade talks going on this week, it’s likely that there will be enough disappointment to push gold higher, but until we know exactly how that turns out, it’s just conjecture at this point. This has been a nice pullback and has started to offer value. The $1500 level continues to be crucial as well, so pay attention to this level.

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