Gold Weekly Price Forecast – Gold markets make statement on Friday

Gold markets initially pulled back during the week but found enough bullish pressure on Thursday and Friday to break out to the upside. By breaking above this uptrend line that I have shown, (which is easier to see on daily charts) it shows that the market might be ready to continue going much higher. Clearly, the sellers are on the back foot now.
Christopher Lewis
Gold weekly chart, June 06, 2019

Gold markets initially fell during the week, and at one point looked on the verge of a serious break down. However, Thursday was bullish and Friday broke above the downtrend line that has been so important over the last several weeks. That being said, now that we have not only break above that downtrend line but have also closed towards the top of that candlestick suggests that we are going to continue to find plenty of buying pressure.

Price of Gold Video 03.06.19

Short-term pullbacks could be thought of as buying opportunities and now that the $1300 level is also underneath, it’s difficult to imagine a situation where somebody could think that this market is one that should be sold. With this, it’s very likely that we are going to go to the $1325 level, possibly even the $1350 level after that.

I don’t know that we get there quickly, but it certainly looks as if we are trying to get there. I do not have any interest in trying to short this market now that we have seen this type of action. The $1270 level now looks as if it is going to be the “floor” in the market, as the 200 day moving average is sitting there, and has offered enough support to bring in buyers. With all of the moving pieces out there, it’s very likely that there is enough negativity that should keep people looking for safety.

Please let us know what you think in the comments below

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