Gold Goes Boom as High Trend Resistance is Bulldozed by Bulls

Gold’s recent winning streak continued last week as it gained 6% in value, extending Gold’s four-week increase to 10.7%. The commencement of this week has seen fresh bullish themes hit new highs, as prices break out into five-year highs!
ICE FX
Gold weekly chart, June 24, 2019

Taking a step back and viewing the wider perspective of the yellow metal’s history within the technical analysis, we can see that in 1999 a slow inclination was present stretching across the period of just over a decade, reaching its peak in 2011. The topside run was then posed by a 50% pullback over the next eight consecutive years following the high of 2011, prompting Gold to spend many recent years in a state of consolidation. This was until we hit 2019 where Gold has seen highs reminiscent of eight years ago.

Gold Monthly Price Chart Overview (2000 – 2019)

Gold has demonstrated a batch of resistance through low periods previously on the chart. Therefore, despite the precarious top line demonstrated recently and some traders doubting the stability of Gold’s future value, the yellow metal has established it has been able to hold highs through previous similar themes. However, this week bullish efforts have been able to bulldoze through Gold’s resistance and for the first time since 2013 Gold was trading at huge highs of above 1400. Which is a huge leap from the supportive 1275 that was demonstrated three weeks prior.

So why has Gold gone boom and is this trend set to continue? Events in the headlines clearly contributed to the events of last week and continuing onto this week, with the Fed and the Central Banks clearly holding onto a dovish posture. Again referring back to Gold’s bullish trend in 2011, this took place as a result of the Financial Collapse where Global Central Banks also posed a dovish posture. The synchronicity of the two events resulting in a boom for Gold is not difficult to determine. As a result, this could indicate that there is a further top side to come for Gold in the up-and-coming weeks if the trend is to continue with similarity.

Gold Monthly Price Overview (February – June 2019)

Given the dramatic boom for Gold this week due to world events, prices have become so far stretched from any nearby trends, that even bullish strategies are hard to predict for Gold this week. However, the significance of the trend and it’s a similarity to that of events in 2011, do promote the response that the technical forecast for the week ahead is set to continue to be bullish. At the time of writing Gold was at 1414.74.


ICE FX offer you confidence in the Forex Trading Market. ICE FX have a wealth of online resources available for beginnersexperienced traders and investors . You can sign up for an account, view information regarding the current Forex Market and chat to other investors via our online support forum.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US