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Gold Price Forecast – Gold markets choppy on Wednesday

By:
Christopher Lewis
Updated: May 1, 2019, 16:25 UTC

Gold markets went back and forth during the day on Wednesday, as we have a lot of noise in the US dollar and of course the precious metals market. As we await the decision of the Federal Reserve, expected to be no change, then the focus will move towards the press conference.

Gold daily chart, May 02, 2019

Gold markets were back and forth during the trading session on Wednesday, showing signs of confusion and of course a reaction based upon the ISM Manufacturing PMI numbers falling flat in the United States. Because of this, it appears that now we are paying quite a bit of attention to the Federal Reserve coming out in a few hours after that, and it’s very likely that the direction of gold will be highly influenced by the US dollar.

Gold Price Forecast Video 02.05.19

Currently, we have recently broken below the head and shoulders pattern I have marked on the chart, so of course a lot of traders are going to be paying attention to that. If we can break down below the recent lows, then we could extend for a move down to the $1225 level. That is the measured move of the head and shoulders. However, if we turn around and break above the 50 day EMA, pictured in red, we could then go looking towards the $1310 level.

Look for the impulsive candle stick to tell you which direction you should be trading, and then simply follow the market. In the meantime, it looks like we are coiling up like a spring in order to bring more momentum into a market that has slowed down and shop around for the last couple of days. Ultimately, this is a marketplace that should continue to be noisy, but we should get some resolution rather soon.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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