Gold Price Forecast – Gold markets stall

Gold markets did very little during the trading session on Monday as one would expect, with the FOMC Statement coming out on Wednesday. Because of this it’s very likely that there isn’t anywhere for the markets to go in the short term, so what I suspect we will see is an attempt to tread water between now and that crucial statement. As soon as we get that statement we then will see the market react to whether they think the US dollar is going to be dovish or bearish. At this juncture it’s a little bit early to tell but I think that a lot of traders are trying to get ahead of the Federal Reserve and play the “soft dollar” narrative.

Gold Analysis Video 18.06.19

That in theory should lift the gold market, but if the Federal Reserve doesn’t come out and sound more dovish than the last statement, it’s very likely that Gold could get punished on Friday. The upside is protected at various short-term levels, but a break above the Friday candlestick would be important enough to warrant buying gold. If we break down from here the next major support level is the $1325 level followed by the $1300 level.

When you look at a multi-your chart for gold, it looks as if it is trying to build up some type of base. At this point it’s very difficult to be highly levered in the gold market but one would have to think that eventually it is going to break out to the upside, especially as central banks around the world continue to use monetary policy.

Please let us know what you think in the comments below