Gold Price Forecast – Gold markets reboundGold markets initially pulled back a bit during the trading session on Wednesday, testing the top of the previous uptrend channel. However, there is some resistance just above.
Gold markets pulled back a bit during the trading session on Wednesday, testing the top of the up trending channel, which of course is a bullish sign as we bounced a bit. The $1300 level above is significant resistance but it looks as if we are trying to build up enough momentum to continue to go higher. The US dollar is on its back foot, so is very likely that we could get that boost needed. The 20 day EMA is just below, right underneath the top of the up trending channel that we broke above.
Gold Price Video 10.01.19
At this point, I think that we will probably continue to go towards the $1400 level, which is the top of the longer-term consolidation area. I do not want to sell gold, unless of course the Federal Reserve turns around and changes its mind about being more data dependent. I think that gold is getting a boost from not only a softening US dollar, but possibly a lot of concern around the world when it comes to global trade and economic fear. In this sense we have a bit of a “perfect storm” for Gold markets, and it certainly seems as if you are patient enough, you should be rewarded with profits by hanging on to the trade.
I believe that the $1250 level underneath is the absolute “floor” in the market, so I do not think that we break down below there. However, we did do that we would probably drop down to the $1225 level, possibly even the $1200 level after that. All things being equal though, I suspect that only has about a 10% chance of happening.