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Gold Price Forecast – Gold markets sit sideways

Christopher Lewis

Gold markets continue to tread water around the $1275 level, and just below the 200 day EMA. That of course will attract a lot of technical trading, and it’s likely that machine traders are getting involved as well. Keep in mind that the US dollar has great influence on the precious metals markets, and of course with the FOMC Meeting Minutes coming out during the trading session on Wednesday, we could get a bit of a move. Quite frankly though, I think that rallies at this point would be nice selling opportunities, as there is such negative pressure. The $1290 level of course is an area that has attracted a lot of attention, but beyond that we have the $1300 level which is where the downtrend line intersects.

Gold Price Video 23.05.19

In fact, it’s not until we break above the $1300 level that I would be buyers of the market, and even then I wouldn’t be bothered going long until we get a daily close above that level. In the short term, I believe that rallies are to be sold, because quite frankly this is a market that seems to be trying to force its way lower. That being said, we should keep our minds open, so at this point in time be cautious. However, if we get the daily negative candle that breaks down below the recent lows, it opens the door to the $1250 level, and then possibly the $1225 level after that. I believe that the $1200 level underneath is the absolute “floor.”

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This article was originally posted on FX Empire