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Gold Forecast: Market Stalls at $3,500 Resistance Ahead of Jackson Hole

By Christopher Lewis

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex...

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  • The gold market has gone back and forth during the trading session here on Monday, as we're just waiting around for the next catalyst.
  • And with the Jackson Hole symposium this week, maybe that will be it.
  • With Donald Trump meeting with the Ukrainian leader today, that could be it. Or we may just be stuck with this nonsensical sideways action as we are in the middle of one of the quietest times of the year as most big traders are away at holiday. They're worried about the beach, not the gold market.

That being said, you can see quite clearly that we do have a situation where we've been in an uptrend for what seems like a lifetime. And it is worth noting that each drop successively gets a little higher. So that is the very definition of an uptrend.

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Major Barrier Above

Gold Forecast 19/08: Market Stalls at $3,500 (graph)

The real barrier is going to be near the $3,500 level. And if we can break above there, then we really could take off and go looking to the $3,800 level. $3,800 would be the measured move on the $300 of consolidation. But really at this point, I think you've got a scenario where we're just hanging around the 50 day EMA and looking for a reason to get moving.

We just don't have it right now. Short term back and forth. Trading I think continues to be the way forward, but as things stand right now, this is just a grind. It's an investment. It's not a trade. So, make sure that you're not looking for anything major in the short term. But once we get that momentum, you'll know all about it and we'll go much higher, I believe. If we break down below the 50 day EMA, it's not until we break down below the $3,200 level that I would be worried about the trend.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

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