Gold Price Forecast – Gold markets show signs of exhaustion

Gold markets continue to look very bullish, and at this point I think it’s only a matter time before buyers come back, with the $1500 level underneath offering massive support. That support level should not be breached, but if it does it’s likely that we could go down to the $1450 level. That is the top of an ascending triangle on the daily chart, and therefore should be an area of support. I don’t have any interest in trying to short this market, because the central banks around the world continue to ease monetary policy, which of course is very bullish for gold. In fact, it’s one of the first places traders will get involved.

Gold Outlook Video 02.09.19

To the downside, I think it’s only a matter of time before we see signs of support on an hourly chart that we can take advantage of. The alternate scenario of course is that we break above the top of the shooting star for the week but that seems to be very difficult. At this point, if we do break above there it will be a bit of a “blow off top”, so I would be a bit cautious about buying. I do think that we go higher than that given enough time, but we have gotten so far ahead of ourselves it’s very difficult to go long at this point as it will be very difficult to do so.

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