Gold Price Forecast -Gold markets rally significantly on ThursdayGold markets continue to show major support at the $1270 level, rallying significantly on Thursday. However, this isn’t necessarily a sign that we are ready to go higher for a longer-term move, simply that we are going to see a lot of volatility going forward again.
Gold markets rallied rather significantly during the trading session on Thursday and a bit of a safety play, as the stock markets broke down significantly. That being the case, we may have got a bit of a short covering rally but at this point I see a major downtrend line above that should continue to keep the market down as well. It is worth noting that we stopped right at the 50 day EMA, which is painted in red on the chart. Signs of exhaustion would be selling opportunities on short-term charts, and at this point it’s difficult to imagine that gold has suddenly changed its attitude and should take off to the upside.
Price of Gold Video 24.05.19
That being said, if we do break above the $1300 level on the daily chart, then it would be a very bullish sign for gold. At this juncture though, it’s obvious that we have seen a lot of fear in the marketplace on Thursday, but these things tend to come and go rather rapidly in this type of environment. If we break down below the $1270 level, then it opens the door to the $1250 level and below at that point. I do believe that eventually will happen, but obviously we are quite ready to do so just yet. Expect a lot of volatility and noise in the market, as the machines have been pumping back and forth in the futures markets trying to figure out which direction to go.
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