Weekly Gold Forecast - 1 July 2019


Gold markets tried to rally during the day on Friday but ended up forming a major shooting star. By doing so, the market has shown how much resistance that we have seen above, and beyond that we have formed a shooting star on the weekly chart. If we break down below the $1400 level, then it’s likely that the market is going to go lower, perhaps trying to aim for the gap below. That means that we could go down to the $1350 level eventually. I don’t expect to see that happen overnight, but I do recognize that we could get that move as we take profits from such a huge rally to the upside. Beyond that, one would have to think that a lot of traders have missed the move, so they are waiting for opportunities underneath.

I believe that the $1300 level should be massive support, so at this point I don’t think it makes much sense to try to short this market when you can simply wait a couple of days. I’m simply looking for a bounce in order to take advantage of. The weekly shooting star of course is very negative sign, but if we were to turn on a break above the highs, that could send this market much higher. All things being equal, I am very bullish of gold but I recognize that we have perhaps overextended ourselves quite a bit.

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Gold tends to move in $25 increments, as seen marked on the chart. As you can see, the market is very technically driven, and with the G 20 this weekend it’s very likely that we will continue to see fear go back and forth. Ultimately, this is a market that I think as already made up its mind it’s going to rally longer-term anyway, especially considering that the Federal Reserve is looking to cut rates at the same time.


Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.