Gold Price Forecast – Gold markets see selling again on Wednesday

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Updated: Aug 9, 2018, 04:50 GMT+00:00

Gold markets continue to show negativity during the trading session on Wednesday, as the trend line that I have been talking about continues to hold. That being the case, I think that we are trying to build a case as to whether or not we are going to rise or fall below a major support level in the form of $1200.

Gold markets initially tried to rally during the trading session on Wednesday but found the downtrend line a bit too stringent to continue. By doing so, the market looks very susceptible to selling pressure. I believe that the $1200 level underneath will continue to be major as far as importance is concerned, but I think that in the short term it’s probably a bit of a range bound market with a short-term negative bias. If we can break above the downtrend line that I have marked on the hourly chart, it’s possible that we could go much higher. Alternately, if we break down below the $1200 level on a daily close, then it could open the door for a move down to the $1140 level. Overall, this is a market that is going to be very noisy and difficult.

I suspect that we are getting ready for a larger move because of the compression that I have seen, but I would wait for an impulsive day to put any serious money to work. In the meantime, you could continue to short as long as the downtrend line holds on the hourly chart, but I would do so with small positions at best. A break out to the upside could lead this market right back to the $1225 level. Regardless, expect a lot of noise over the next couple of days.

Gold Analysis Video 09.08.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.