Gold Price Technical Outlook:
- Gold weakness to May 2019 trend-line would be a good test
- 200-day has been a difficult spot to overcome near-term
- FOMC meeting may get things moving with a clearer trading bias
Gold Price Forecast – Could Get Put to the Test Week
Next week’s FOMC meeting may help gold determine a clearer trading bias. Right now gold is sagging a bit and seen as potentially accelerating lower. But not too far below is a trend-line from May 2019, which if tested may present us with a clearer trading bias.
The trend-line has quite a bit of meaning given its length and recent test and hold. A decline and turn off the line could offer up a trade to the upside with good risk/reward, whether you are a short-term trader or someone looking at the potential for a big-picture rally.
If gold doesn’t hold the trend-line and 1750, then a larger move to the spring lows at 1676 could develop. This move would significantly undermine the broader outlook.
On the flip-side, should gold continue to hold around where it is, it will need to climb back above the 200-day MA and recent high at 1834 to turn bullish. Breaking out above that level would present a higher-high and a path towards the trend-line off the August high, currently situated around the 1880 level.
All-in-all, gold is in limbo in the immediate future, but with important levels on both the top and bottom-side and a catalyst (FOMC meeting), we could soon have a sturdy trading bias.
Gold Price Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
