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Christopher Lewis
Gold daily chart, October 17, 2019

While I do believe in the longer-term efficacy of the gold market, I also recognize that price is what truly matters. If we break down below the uptrend line that we are sitting on, that could be the beginning of something rather ugly. The $1450 level would of course be the initial support level as I have been saying, but it’s very likely we could go looking towards the 200 day EMA after that.

Gold Analysis Video 17.10.19

To the upside, the $1500 level offers resistance, and I think it’s likely that we will probably continue to see a lot of downward pressure at that point. If we can break above it then we will attempt to take out the downtrend line, which should give us an opportunity to go along for a bigger move. Gold markets have rallied quite significantly over the last several months, but in September started to pull back. While this has been a significant pullback it has been quite orderly, so this still suggests that there are plenty of traders out there willing to buy.

I would urge you to pay attention to my silver forecast as well, because it does of course tie into precious metals in general. At this juncture, we need to make some type of impulsive decision as to where we are going next. Gold looks vulnerable, so I can be as bullish as I want, the market breaks down that’s really all that matters. Central banks around the world continue to cut interest rates and quantitative easing projects are piling up, so longer-term attitude for goal should be bullish, but prices what matters.

Please let us know what you think in the comments below

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