Gold Price Forecast – Gold markets break down

Gold markets broke down a bit during the trading session on Thursday, as we have sliced through the $1270 level but are starting to see buyers just below there. We are in the midst of a fairly decent sized fight now.
Christopher Lewis
Gold daily chart, May 03, 2019

Gold markets fell rather hard during the trading session on Thursday but is starting to see a bit of support underneath the $1270 level. That being said, we have broken down rather significantly, so that should be kept in mind. I think that although we could get a bit of a bounce, there’s probably still Sellers above just waiting to take advantage. On the whole, it looks as if the US dollar will continue to gain strength given enough time, but there is a lot of noise in this vicinity. A bounce from here could be in store, but I think that the neckline from the previous head and shoulders will continue to be an issue that the buyers will have to contend with.

Gold Price Predictions Video 03.05.19

If we break down below the bottom of the candle stick for the day on Thursday, that should open the door to the $1250 level. Keep in mind that we have the jobs number coming out is going to have its effect, so ultimately I think that the market participants will continue to see a lot of back-and-forth. You should be cautious about your position size, but keep in mind that it might be quiet heading into the labor figures.

If we were to break above the neckline of the previous head and shoulders pattern, that would be a very strong sign of strength in the gold market, but quite frankly I think that’s very unlikely at this point after the action for the last couple of days.

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