Gold Price Forecast – Gold markets roll over for the day

Gold markets initially tried to rally during the trading session on Thursday but turned over as we reached towards the highs of the previous session. By doing so, we slammed into the uptrend line that I was talking about yesterday. It now looks as if we are stabilizing in this general vicinity, but certainly this isn’t a good look as if the daily chart closes like this, it’s actually a very bearish candle stick.

Price of Gold Video 01.03.19

The US dollar had a reasonably strong trading session, and that may  have been part of the issue for the precious metals sector. Ultimately, if we can break down below the uptrend line then I think the next major support level is to be found just above the $1300 level, as it will coincide with the last surge higher, and of course the 50 day EMA. If we break down below there, then we could go down to the $1275 level.

As far as buying is concerned, we need to retake the highs from the Wednesday session to have confirmation, but it should be noted that if you are shorter term trader you may be able to play a bit of a bounce in this area. Expect a lot of noisy and choppy trading and pay attention to the US Dollar Index. If the US dollar rises, that could be what sends Gold lower. However, as things stand at the moment, it looks as if we are trying to stabilize here.

Please let us know what you think in the comments below