Gold Price Forecast

Gold price have broken above a downtrend line on the daily chart, as it looks like we are ready to continue to go higher, but we may need to pull back a little bit in order to build up the necessary momentum. If we can break above the $1250 level, then I think the $1300 level will eventually be targeted. On pullbacks, I anticipate that the $1200 level underneath will be supportive, just as the previous downtrend line on the daily chart had been.

When I look at the longer-term charts, I can see that there is significant support just below the $1200 level, as well as the $1350 level offers significant resistance. Ultimately, this is a market that I think is trying to return to that consolidation overall, and that being the case we do have much higher to go. If we get some type of reason to jump into a “safety trade”, then gold should work out. I recognize that the falling US dollar could also help as well if it happens. In the short term though, I think the pull back is simply a momentum building opportunity to finally break out. 

I suspect that the market will continue to be volatile, just as we are starting to see a lot of concern around the world when it comes to geopolitical issues and of course asset problems, Italy issues, trade war between US and China, Brexit still on the focus. Gold is certainly at the bottom of an overall range, so would not surprise me at all to see it take off.