Gold Price Forecast – Gold markets remain buoyant through volatilityGold markets rallied again initially during the day on Wednesday but found the $1210 level to be a bit too resistive to continue going higher. Because of this, we pulled back significantly but now are starting to show signs of resiliency again.
One thing that’s interesting about the precious metals markets right now is that they are starting to show ascending triangles. This of course are bullish sign, and I think that gold may try to break out. However, I am not confident enough to put levered money to work. Ultimately, I believe that the US dollar will be the biggest driver of this market, so I look at this as still be in range bound, but certainly showing signs of trying to break out. I think the $1205 level underneath offer support, while the $1210 level is obviously resistance, just as the $1215 level is.
The $1200 level underneath is massive support, and you can even make out a potential “W pattern” on the hourly chart. However, I don’t think it’s going to be quite that easy, as there are a lot of concerns around the world when it comes to the trade war and other things. With that, the US dollar has continued to get a bit of a bid every couple of days, and that may continue to be the way forward. If that is true, gold markets will struggle to hang on to major gains.
Quite frankly, the easiest way to play gold as the pay attention to the five dollar increments that seem to come into play quite often. At this point, we are at the top of the recent consolidation, so one would think that a pullback could happen. However, the ascending triangle that is forming would be a break out somewhere above $1215, which could have this market going to $1230. I don’t think that’s going happen today though.