Forecast for Gold Price – Gold Markets Hover Near Support

Tuesday’s trading session saw a slight decline in gold prices, as we continue to hover near the same support gap that we tested on Monday.

Tuesday’s trading session saw gold prices slide slightly lower in order to test the gap from many weeks ago that the market deemed encouraging on Monday. At this time, it appears that gold is attempting to recover, but it will be impossible to predict whether or not this will be a long-term trend. The 50-Day Exponential Moving Average (EMA) is located at $1782 and is falling, thus I believe this could also provide some resistance. Any rebound from here that exhibits symptoms of depletion will be sold into, and I believe that will be my signal to either take profit or exit the market. Alternatively, we could collapse beneath the hammer.

If we do break below the hammer on Monday, I would see that as an extremely bearish signal, possibly taking this market down to $1680. I believe a rebound is more likely than not, and if we can break over the 50-day exponential moving average, then we could make a real push at $1800. However, the following couple of days may be rather calm because many people will be awaiting Friday’s employment data.

This has a significant impact on cash flow, and the fact that it is the end of August suggests that we may also be quite quiet. Regardless, I am monitoring a handful of levels based on the hammer from the Monday session, allowing me to treat this as a binary setup.

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