Gold Price Forecast – Gold markets recover after initial selloff

Gold markets gapped a bit higher during the trading session on Thursday, but then turned around to fall and filled the gap to find buyers. In fact, we rallied rather significantly to the upside, clearing the $1340 level. There is a lot of resistance above that could continue to cause issues, and I think fading rallies that show signs of exhaustion will be the way going forward. However, if we did break above the $1350 level, it would be a very big sign of strength.

Gold Technical Analysis Video 07.06.19

At this point, it’s very likely that we will see sellers jumping back into the market sooner or later, but we also have the jobs number coming out on Friday so obviously that’s going to be a major influence on what happens with the greenback, which also has a direct influence on what happens with gold. Looking at the chart though, it’s very likely that we are in a consolidation range, with the $1350 level being resistance, and the $1270 level underneath being support.

Regardless of what we say about the technical set up, the one thing that you can look at is that it is completely overbought. We have gone straight up in the air, and it’s likely that we will start to exhaust ourselves. Because the fact that we have gone so high in such a short amount of time, it’s likely that we won’t have enough momentum to find the market breaking out. Look for weakness and exploit it.

Please let us know what you think in the comments below