Gold Price Forecast – Gold markets continue to struggle with major figure

Gold markets went back and forth during the trading session on Wednesday as we continue to see the $1300 level as significant resistance. Beyond that, there is a major trendline we are fighting.
Christopher Lewis
Gold daily chart, May 16, 2019

Gold markets have been a bit of a mess as of late, as we seen a very bullish move after a long slow grind lower. That being said, the downtrend line is still very much in effect, and as a result it looks as if the market is probably going to continue to drift lower based upon this technical set up. However, that’s not to say that we can’t break out. With that, let’s take a look at the potential alternate scenario, which of course is a breakout. If that’s going to be the case, it’s likely that we are probably going to go looking towards the $1315 level. After that, the $1325 level is very likely.

Gold Price Forecast Video 16.05.19

The alternate scenario, and what I believe is probably the more likely one, is that we break down below the lows of the trading session on Wednesday and continue to drift down towards the $1280 level. A break of that level could send this market down towards the $1275 level. At this point, the market could really start to break down if we go below there. That isn’t what I expect in the short term, but clearly we have a lot of information around this area they can throw the market both directions. However, the one thing that cannot be argued is that we have been gradually drifting lower over the last several months, and even though we’ve had a couple of really strong days lately, the bigger picture suggests that nothing has truly changed quite yet.

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