Gold Price Forecast – Gold Markets Recover After Initially Falling

Gold markets initially fell during the trading session, trying to fill the gap from the previous session, but turned around to form a bit of a hammer. The $1570 level has been an area of interest, but at this point I think it’s only a matter of time before the market continues to see movement based upon the latest headline, which of course will either have to do with the Chinese or the Iranians. With all of that being said, it makes sense that if we do break to the upside the $1600 level will offer a significant amount of resistance. It’s a large, round, psychologically significant figure, but if we were to break above there it could open up the door to much higher pricing.

Gold Outlook Video 08.01.20

To the downside, I think there is a significant amount of support at the $1550 level, possibly even the $1525 level. The 50 day EMA is reaching towards the upside now and should offer significant support. The $1500 level coincides with that moving average, so it is another reason to think that there is going to be support. Ultimately, the market is in an uptrend and it’s very likely that we continue to go much higher. The bounce from the $1450 level was at the 38.2% Fibonacci retracement level as well, which indicates that there is a lot of momentum in this longer-term market. All things being equal, I do believe that we will go higher over the longer term, it’s only a matter of time before some type of headline comes out and shocks everyone.

Please let us know what you think in the comments below