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Gold Price Forecast – Gold Markets Continue to Test Triangle

By:
Christopher Lewis
Updated: May 13, 2020, 16:31 UTC

Gold markets rallied a bit during the trading session on Wednesday, testing the top of the overall triangle that we have been in. Ultimately, this is a market that I think will continue to cause a lot of headaches.

Gold Price Forecast – Gold Markets Continue to Test Triangle

Gold markets have rallied a bit during the trading session on Wednesday, breaking above the downtrend line that extends down to form a symmetrical triangle. If we can break above the highs of the trading session on Wednesday, then it is likely that the market will go looking towards the $1750 level, perhaps even the $1800 level after that. All things being equal, this is a market that looks highly likely to see the $1700 level underneath as a significant support barrier. Underneath, the 50 day EMA offers support as well, so I think it is much more likely for gold to go higher than it is to break down. With that being said, keep in mind that there are a lot of crosscurrents going on.

Gold Price Predictions Video 14.05.20

As politicians continue to strength fear in the hearts of men, the possibility of the coronavirus extending further is going to cause major issues. The market looks likely to see a lot of volatility and fear trading. Ultimately, this is a market that looks as if it wants to go higher based upon the longer-term trend, and during the day on Wednesday we did see an attempt at that. The fact that we broke above the potential inverted hammer on Tuesday also is a good sign. I like the idea of buying value and therefore dips are likely to be thought of as an opportunity. All things being equal, this is a market that is choppy but has been going from the lower left to the upper right for quite some time.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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