Gold Price Forecast – Gold markets sluggish on Friday
Gold markets pulled back slightly during the trading session as we essentially sat still on Friday. By adding a 300,000 jobs during the month of January, this makes a stronger case for the US dollar. However, the Federal Reserve has recently suggested that they are going to see a more dovish central bank in America, and this of course is negative for the US dollar. By extension, that should let the gold market as traders trying to preserve their wealth.
Gold Price Forecast Video 04.02.19
Ultimately, I think that a pullback could occur that extends all the way back down to the $1300 level, or the 20 day EMA, pictured in green on my chart. Any pullback that shows a supportive candle in that region has me interested in buying gold, as it has done so well. That being said, there has been a major amount of resistance previously and of course selling pressure, so it isn’t necessarily going to be the easiest move to go higher. With that in mind, I expect volatility but I also look at it as an opportunity for gold buyers to build up the necessary momentum needed to break higher. Looking at even longer-term charts, it is possible to make an argument for return to the $1400 level based upon a multiyear consolidation.
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As for selling gold, I have no interest in doing so, because quite frankly we have seen so many impulsive waves to the upside that I think people will look at pullbacks as a way to pick up gold “on the cheap.” Pay attention to the US Dollar Index, if it falls significantly, that could have money flowing into gold rather quickly.