Gold Price Forecast – Gold markets fail to hang onto gains

Gold markets initially tried to rally during the trading session on Monday but reached a lot of trouble in the form of the previous neckline from the head and shoulders pattern I have marked on the chart. With that being the case, it’s very likely that we are going to continue to see trouble in this area, and perhaps we could get a bit of a pullback from here. This will make quite a bit of sense as the US dollar will continue to strengthen, and of course money flowing into the S&P 500 after an initial selloff requires greenback’s as well. That automatically puts a bit of pressure on this contract.

Gold Analysis Video 07.05.19

Based upon the chart, it’s very likely that we could continue to go much lower, with initial support to be found at the lows of the last couple of days near the $1268 level. If we break down below there then we probably go looking towards the uptrend line that I have drawn on the chart. Based upon the head and shoulders pattern, we could even go down to the $1225 level as the measurement suggests could happen.

There is always the alternate scenario, and in this case it would be a break above the $1300 level. We would clear the 50 day EMA, and obviously the previous neckline. If that happens, it’s likely that we will continue to go much higher. However, so far it looks like that is the least likely of the scenarios.

Please let us know what you think in the comments below