Gold Price Forecast – Gold markets continue to go back and forth

Gold markets pulled back initially during the trading session on Tuesday, as we continue to see a lot of volatility. Recently, we have broken down below a head and shoulders pattern, and now we are just walking along the previous neckline. However, we have the 200 day EMA underneath so there are a lot of technical things going on at the same time. Beyond that, there are a lot of people out there that don’t know what to do about the US/China trade relations, as they are all over the place and that of course there is the greenback everywhere.

Gold Outlook Video 08.05.19

There is an uptrend line underneath that could start to show support as well, so at this point I think that although we may drift a bit lower, I think it will be a controlled descent. If we were to break to the upside, in clear the 50 day EMA, then we will test the $1300 level, and perhaps even higher than that. This is a market that will continue to be very difficult and choppy so it’s going to be short-term based until we get one of these major levels broken. Quite frankly, I’m a bit surprise that we did not break down quicker based upon the head and shoulders, but with so many moving pieces out there when it comes to risk, it makes sense that Gold retained some of its bid even though the US dollar has been relatively strong.

Please let us know what you think in the comments below