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Gold Price Forecast – Gold markets struggle at 50 EMA

The Gold markets went back and forth during the trading session on Thursday, struggling at the 50 day EMA. We have recently bounced from an uptrend line, so this is getting interesting.
Christopher Lewis
Gold daily chart, November 16, 2018

Gold markets have recently found an uptrend line that was supportive enough to push the market a little bit higher. The 50 EMA just above has offered resistance, but the support underneath at the $1200 level is crucial as well. If we can break down below the uptrend line, then I think we will probably reach down to the $1175 level. If we break down below there, then the market is likely to reach down to the $1100 level, followed by the structurally and psychologically important $1000 level. That’s an area where I would expect to see a lot of fight in the market.

Gold Price Video 16.11.18

We had been consolidating between roughly $1200 and the $1400 level above. Because of this, if we break above the 50 day EMA significantly, then I think we may try to work our way towards the $1400 level. Obviously, there would be a lot of work to do to make that happen, especially considering that the US dollar has strengthened so much, this of course works against the value of gold itself. I believe that the next couple of days are going to be crucial, so pay attention to what happens. The $1200 level has become even more important than it’s been in the past, because we could be looking at the market trying to build up the momentum to break down rather significantly. Otherwise, if you are patient enough you may be able to ride the move higher. Expect volatility, and keep your position size small, perhaps even trading physical gold if you’re looking to go long.

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