Q3 2019 Gold Forecast and Top Trading Opportunities
Gold Momentum Remains In-Play
Gold is likely to make a fresh attempt at Tuesday’s $1,535/oz. high in the near-term and may press even further ahead as fundamental positives line-up. Wednesday’s bond market moves re-affirmed market fears of a recession on the horizon, and not just in the US, driving investors back into safe-haven assets including JPY, CHF and gold. While the precious metal sold-off on Tuesday, after US President Trump announced he was delaying some Chinese tariffs, it has pulled back higher and a break above $1.524/oz. opens the way back to $1,535/oz. followed by $1,540/oz. The latter target is a re-fill of a gap on the April 8, 2013 weekly candle. Beyond here the charts point to the $1,617/oz. – $1,622/oz. zone. Support between $1,494/oz. and $1,500/oz. Buying any asset is psychologically difficult when they approach a multi-year high, but it remains the case that bulls continue to control gold.
After touching a new 19-month high of $17.50/oz. on Tuesday, silver has sold off, but like gold remains positive. A break of the Tuesday peak brings the January 25, 2018 horizontal high around $17.70/oz. into play before the September 8, 2017 high at $18.21/oz. appears. Support between $16.65/oz. and $16.80/oz. Market volatility has picked up and needs to be monitored.
The gold/silver ratio remains steady around 88.10.
Silver Daily Price Chart (July 2018 – August 15, 2019)