Gold Price Forecast – Gold Markets SidewaysGold markets have been sideways over the last several days, and this week has essentially been a complete wash. At this point though, the bullish flag is still intact, and the 50 day EMA is still a major influence.
Gold markets went nowhere on Friday again during what was a rather lackluster trading. That being said though, there is an obvious downtrend line that is part of a bullish flag in this market. I do believe the Gold will eventually break out to the upside although we need a little bit help at this point. The situation with the Brexit may be one of the reasons Gold takes off, and continues the overall uptrend that we have seen. We have recently tested the 38.2% Fibonacci retracement level, an area that of course is quite often followed. The move based upon the bullish flag could be as high as $1800, which is my longer-term target anyway.
Gold Price Video 21.10.19
At this point in time I still believe in buying pullbacks as there are plenty of geopolitical concerns out there that could continue to push money into the gold market, and quite frankly the central banks around the world are doing nothing to work against the value of gold as well, with quantitative easing and interest rate cuts. I believe that the $1450 level should offer significant support, so it’s not until we break down below there that I would start to consider other possibilities.
It might be really quiet, so therefore you may need to hang on to a position for a while. The longer-term outlook for gold is still bullish, so you should always have time to build up a larger core position going to the upside. If we were to break down through the bottom of the flag within the next major support area that comes into play as the blue 200 day EMA which is currently near the $1400 handle.
Please let us know what you think in the comments below