Gold Price Forecast – Gold markets rally slightly into resistance on Friday to close out week

Gold markets rallied significantly during the trading session on Friday, but found the $1425 level as resistance, an area that has been resistance more than once. At this point, the market looks like it is trying to build up enough momentum to break out, but obviously we have a lot of work to do. It would be asking a lot for the markets to suddenly break out and race to the upside ahead of the weekend, because there are so many clinical headlines and the like that could come over the weekend. At this point in time, I think a short-term pullback does make sense by the $1400 level looks to be very supportive. Beyond that, there is support all the way down to the $1390 level there, making a “support zone.”

Gold Price Video 29.07.19

Looking at the chart you can also see that the 50 day EMA is starting the race toward that level, so I think that’s yet another reason to think that the buyers come back. Keep in mind that the Federal Reserve is going to be cutting interest rates here soon, and that of course will weigh upon the US dollar which helps gold. Central banks around the world look very soft, so that gives a bit of a reason for precious metals and “hard money” to continue to gain. That being said, a little bit of momentum building may be necessary in the short term.

Please let us know what you think in the comments below