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Gold Price Forecast – Gold markets rally on Powell statement

By:
Christopher Lewis
Updated: Jul 10, 2019, 15:48 UTC

The Gold markets initially fell during the trading session on Tuesday but found enough support underneath the $1400 level to rally significantly. This was based upon the prerelease statement from Jerome Powell ahead of his congressional testimony.

Gold daily chart, July 11, 2019

Gold markets initially pulled back during the trading session but then rallied significantly due to the fact that the Chairman suggested that the Federal Reserve is more than willing to start cutting rates. At this point, buying dips should work, but I am a bit concerned about the fact that we have a gap underneath that has not been filled. A break down below the hammer from the Tuesday session would be negative, perhaps reaching down to the gap underneath. If that does in fact happen, there will be a lot of massive selling, but quite frankly I would be more than willing to buy down at that area as it is a 50% Fibonacci retracement level, the 50 day EMA, and of course a round figure based upon the $1350 level.

Gold Price Forecast Video 11.07.19

Gold markets of course are reacting to the idea that the Federal Reserve is ready to cut interest rates, just as other central banks around the world are. Ultimately, this is a market that should go higher given enough time, with the $1450 level above being resistance. If we can break above there, then the market could go to the $1500 level. Gold is very strong and I have no interest whatsoever in shorting this market, as the central banks around the world are all cutting interest rates. Not only would I be a buyer of gold against the US dollar, but I also would be a buyer of gold against other currencies if available. I believe the Gold is getting ready to end up in a massive longer-term bullish market.

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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