Gold Price Forecast – Gold markets continue to grind lower

Gold markets sold off on Tuesday after initially trying to reach higher. This shows just how much bearish pressure there is in this market, and the descending triangle that we have been dealing with certainly looks as if it is still widely in effect.
Christopher Lewis
Gold daily chart, May 29, 2019

Gold markets initially tried to rally during the trading session on Tuesday but failed. At this point we have broken below the 200-day EMA yet again, and therefore I feel that the market is going to eventually break through the major support level underneath at the $1270 level. Once it does, we will more than likely go racing towards the $1250 level after that. Beyond that however looking towards the $1225 level, and then the $1200 level after that.

Gold Price Forecast Video 29.05.19

To the upside, I continue to look at the downtrend line above as a major barrier, so if we were to break above there it would be a very bullish sign. At that point in time I suspect that we would continue to go towards the $1315 level, and then possibly the $1325 level after that.

At this point in time I believe its only rallies continues to work and therefore I look for signs of weakness on short-term charts to take advantage of. The market was unlikely find plenty of reason to sell off, because quite frankly the US dollar is King right now with the treasury markets attracting a lot of attention. While the moving averages have across yet, they sure are getting close to each other and therefore that is something to pay attention to well. The 50-day EMA is starting to slope towards the 200 day EMA which course is a very negative side longer-term. US dollar strength continues to be a major problem here.

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