Gold Price Forecast – Gold markets continue to be range bound

Gold markets were both bullish and bearish during the trading session on Friday after the jobs number, as we continue to bounce around and try to figure out where to go next. The $1200 level of course is a large, round, psychologically significant figure so it makes sense that the market will continue to respect it. · FX Empire

Christopher Lewis

Updated Fri, Oct 5, 2018, 10:36 PM

Gold markets rallied significantly during the trading session initially on Friday, reaching towards $1210 level. That’s an area that has been resistance a couple of times, as well as support. It’s obvious that we have a significant amount of selling pressure in that area, but we also have a lot of support at the $1200 level. As we continue to bounce around in this area, I think short-term traders will take advantage of this range bound trading and play both levels.

However, if we break down below the $1200 level, we could drop down to the $1195 level, and then the $1190 level. Otherwise, if we break above the $1210 level, we will then test the $1215 level. Breaking above the $1215 level is a longer-term signal, and that eventually go to the $1250 level after that. In the short term though, I believe that we continue to see a lot of back-and-forth action, and as a result I continue to favor shorter-term charts such as the one in front of you. Overall, we need to pay attention to the US dollar, as it is the main driver of the value of precious metals, which of course has been very strong but we are at an area that has shown a significant amount of support on the weekly charts, so I think it’s only a matter time before we turn around and go higher, especially if we can get the EUR/USD pair rallying again, which also sits at support.