Gold Price Forecast – Gold markets testing support

Gold markets went back and forth during the trading session and rather quiet trading on Wednesday, as we are testing the significant $1200 level, an area that has been important more than once. If we can break down below the lows of the trading session on Tuesday, then I think the market probably has a real chance of breaking down significantly. If we do, then I think we go towards the lows which is closer to the $1175 level, which could open the door to even lower pricing. Below there, then I think the $1100 level will open the door towards the $1000 level over the longer-term.

Gold Outlook Video 15.11.18

However, we could bounce from here and if we do I think the 50 day EMA is worth paying attention to. If we can break above that, and of course hold the trend line, those would be to quality reasons to think that perhaps gold is trying to bottom and go higher. That would be more of a longer-term trade, perhaps even an investment, as gold does still hold a bit of a safety trade feature to itself. I think the $1250 level would then be targeted as resistance, and if we can break above there we could go towards the $1300 level given enough time. A break above there of course would be even more bullish and could reverse the entire trend.

When I look at the longer-term charts, it seems as if we are trying to consolidate between roughly $1200, and $1400 above. There’s nothing on this chart so far that tells me things have changed, and therefore a bounce would be expected. However, keep an eye on that support because if it gives way this could get ugly.