Gold Price Forecast – Gold markets looking for support

Gold markets fell slightly during the trading session on Tuesday, reaching down towards the $1390 region, which has seen buyers previously. That being said, when you look at the longer-term charts, most notably the weekly chart, you can see that there are couple of shooting stars, and that of course is a very negative sign. Overall, I do think that we need to pull back here, perhaps filling the gap underneath is exactly what would be needed to convince me. That is down near the $1350 level, and of course the 50 day EMA.

Price of Gold Video 10.07.19

We have Jerome Powell speaking in front of Congress this week, and that of course can move the US dollar in general. If that’s going to be the case then I anticipate that gold will course reflect this as well. If the US dollar falls, that should help gold but I think it’s very likely that the gap still needs to be filled, so I can imagine a scenario where he says something big gets some of the algorithmic traders shorting the gold market, only to turn right back around. Quite frankly, Wall Street desperately needs to keep in free money to get involved for a longer-term move, and that’s exactly what they want to see. If they don’t get it, they will probably throw a fit and sell risk. All things being equal though, the longer-term trajectory seems to be to the upside, so look for value on dips to take advantage of. The $1450 level above is resistance, and if we can break above there we could go to the $1500 level.

Please let us know what you think in the comments below