Gold Price Forecast – Gold markets continue to show signs of resiliency

Gold markets bounced off a major trendline earlier in the week at the $1200 level. Because of this, I think the market is trying to recover a bit of bullish pressure, and the 50 day EMA has been broken to the upside. That’s a good sign, but the $1250 level of course offers resistance. I think at this point it’s likely that the market will continue to try to go higher, and perhaps even stay within the overall consolidation area.

Gold Price Forecast Video 19.11.18

The $1200 level underneath is the beginning of support, with the $1400 level above being massive resistance. Overall, it looks as if we are trying to stay within the consolidation, so that of course is a good sign, and a tradable idea. However, if we break through the $1200 level, I think that we continue to go much lower, perhaps reaching towards the $1100 level, and then the $1000 level. That would coincide with a lot of US dollar strength, which I think is possible at any moment.

I do believe in owning some gold to begin with, so I like the idea of buying it. I do so in its physical form, but leveraged trading is a completely different scenario. If you are going to try to buy this market, I would do so on a short-term pullback. That way you can get a bit of a value when it comes to an opportunity to go forward. However, if we break down below that uptrend line, I would be aggressively short.

This article was originally posted on FX Empire

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