Gold Price Forecast – Gold Markets Trying to Find Footing

New York (Nov 10)  Gold markets gapped a little bit higher during the trading session on Monday, showing signs of life again but at the end of the day we still see a lot of negativity about, and on top of that the US dollar continues to try to strengthen. If that is going to be the case, that could work against the value of gold, at least in the short term. One thing is for sure, gold had a horrific day on Monday, and it is likely that type of selling will not simply disappear. This does not necessarily mean that this is a market that you should be selling, rather that we could probably pull back a bit in order to find a bit of value underneath.

All things being equal, this is a market that I think continues to find buyers, especially near the $1800 level. This is an area that was the scene of a major breakout previously and if you have been following me for any length of time here at FX Empire, you know I have been waiting for that to be tested. With the outsize negative candlestick on Monday, I do believe that eventually we will go looking for it. In that area, if we see some type of supportive looking daily candlestick, then I believe that we could find a nice buying opportunity. If we were to break down below the 200 day EMA, then it might be an opening for even more downward pressure, but right now I think that is quite a way from being reality at this point, so given enough time I do expect to be a buyer.

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