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Christopher Lewis
Gold daily chart, October 15, 2019

Gold markets did very little during Monday session, as we hang about just below the $1500 level. That is an area that obviously causes a lot of psychological resistance, but it is more importantly the middle of the huge wedge that we find the market in right now. With this, it’s obvious that we will need to see some type of resolution to this pattern, as it seems like the market simply don’t know what to do. There is a major uptrend line underneath that will of course attract a lot of attention, so it’s worth paying attention to. Ultimately, the market will eventually break out of this wedge, and then it should show a significant amount of momentum once we get there.

Gold Prices Video 15.10.19

At this point, it’s likely that we will continue to see a lot of risk appetite being thrown around the market by not only the Chinese and Americans, but also fears of a global slowdown. Central banks around the world continue to cut interest rates, so I think that the longer-term attitude continues to favor the uptrend given enough time, but obviously we need some type of catalyst to get going. In general, if the market can break above the downtrend line, it’s very likely that we could go looking towards the $1540 level, and then eventually the $1560 level. After that, the $1600 level would be targeted. On the chance that we break down through the uptrend line, then the next target to the downside would be the $1450 level where I would expect to see significant support.

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