Gold Weekly Price Forecast – Gold markets continue to rally

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Updated: Oct 27, 2018, 06:13 UTC

Gold markets have rallied significantly during the last couple of weeks, breaking through a major downtrend line and showing signs of life again. The $1250 level continues to be an area of interest, but I do think quite frankly we will break above there given enough time. Short-term pullbacks should be buying opportunities, and I believe that we are going to continue to see the overall consolidation between $1200 and $1400 continue.

Gold markets continue to be erratic, but they are starting to see a bit of a safe haven bit due to all of the global concern right now. I think that this market will eventually break above the $1250 level, and once it does it will send the market higher, perhaps to the $1300 level. At this point, I think that the market will continue to go higher but I also recognize there will be the occasional hiccup. Because of this I would keep my leverage low, but I do believe in the bullish state of Gold.

Breaking through the downtrend line was a very bullish sign and I think that if we pull back from here it’s very likely that the $1200 level underneath will continue to offer support, and I think that value hunters would jump in at that point. Pay attention to the US dollar, because if it strengthens too quickly we could have a bit of a negative effect, but both markets can rally at the same time, the entire 1980s saw both markets do that. Because of this, don’t be overly concerned about the dollar but if it spikes in value based upon strength in the US economy and higher interest rates, then gold could fall. However, if it’s more about fear, then gold continues to rally.

Gold Technical Analysis Video 29.10.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.