Gold Price Forecast – Gold Markets Rally Significantly After Trump Comments

Gold markets rallied significantly during the trading session on Tuesday after Donald Trump suggested that the Chinese trade deal could wait until after the election. If that’s going to be the case, then markets are pretty concerned based upon the reaction. Gold rallied but are already starting to give back some of the gains as we got above the 50 day EMA. The market has been grinding lower for a while, and quite frankly gold needs a more sustainable reason to go long at this point. Overall, this is a bullish looking candlestick, but at the end of the day it’s difficult to imagine that gold has completely turned the corner as the $1500 level will cause a lot of resistance as well.

Gold Outlook Video 04.12.19

At this point though, if Trump keeps it up, then he could drive gold markets much higher but one thing that we have learned of the last couple of years is that he will only let the markets fall so far before settling back down and trying to massage concerns out of the S&P 500. He clearly will have seen a significant selloff, and it will be corrected rather soon when it comes to his behavior. He is a master at manipulating the markets, and only makes these comments as the S&P 500 makes fresh highs. However, if he doesn’t watch it, we are going to see a lot of uncontrollable algorithmic selling in the stock markets and send the gold markets to the upside rather drastically. If we were to break above the $1500 level, that could be reason enough to add to any core position, but at this point I think we are essentially going to bounce around between $1500 on the top and $1450 on the bottom.

Please let us know what you think in the comments below