Gold Price Forecast – Gold markets continue to fall

Gold markets gapped lower to kick off the session on Monday, turned around to reach towards the 50 day EMA, before falling again. This is a market that had a massive move lower on Friday, and it looks very likely that we are going to continue to see a bearish pressure because of the action on Friday. At this point, the $1300 level should be resistance, as it is a large, round, psychologically significant figure, but it is also an area that had previously been rather supportive. Because of that, it should now be thought of as resistance.

Gold Prices Video 05.03.19

At this point, it’s probably best to short gold on small rallies, and the first signs of exhaustion. At this point, I don’t have any interest in buying but I would revisit that entire conversation closer to the $1275 level. The trend line break a couple of days ago has been a very negative sign, so I think a lot of traders are now looking to get out of gold. Keep in mind that the US dollar is highly manipulative when it comes to the value of gold, so if it rallies significantly we could see gold markets roll over. At this point, expect a lot of volatility but most certainly a negative slant. If we break down below the $1275 level, and extensively the 200 day EMA just below, then the market really could start to unwind at that point in time. Short-term it looks bearish, but it’s very likely that we will find support just below.

Please let us know what you think in the comments below