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Gold Price Forecast – Gold markets gap higher but then fail

Christopher Lewis

Gold markets gapped higher to kick off the trading session on Friday, but then found a lot of selling pressure just above the $1450 level. By doing so, the market has fallen to fill the gap, as the market has got ahead of itself, just as silver has. The Federal Reserve is looking to cut interest rates and that should continue to lift precious metals. Ultimately, gold is a significant protector against low interest rates and more importantly a falling US dollar. This is a market that looks likely to break out given enough time so I do think that buying dips makes quite a bit of sense. However, heading into the weekend it also makes just as much sense to not carry risk into the closed hours.

Gold Price Forecast Video 22.07.19

I believe that there is support not only at the $1425 level but also done at the $1400 level, down to the $1390 level. There are plenty of buying opportunities underneath so I’m looking for signs of support on these pullbacks. Supportive candles are being bought. I think that gold eventually breaks towards the $1500 level, and therefore I believe that plenty of longer-term traders are looking at that figure as well as it is a large, round, psychologically significant figure. I think given enough time we probably break above there as well. This is a market that has shown quite a bit of volatility but most certainly a strong buying pressure. I have absolutely no interest whatsoever in trying to short gold, because it is obviously in a bullish run.

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This article was originally posted on FX Empire

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