Gold Price Forecast – Gold markets fall hard for Thursday session

Gold markets fell rather hard during trading on Thursday, crashing into the $1290 level before stopping on a dime. That’s pretty impressive support, so at this point it looks that although the downtrend line has held and of course sent the market lower, the reality is that we have not change the entire outlook.
Christopher Lewis
Gold daily chart, May 17, 2019

Gold markets fell rather hard during the trading session on Thursday, reaching towards the $1290 level before stopping rather hard. This is rather impressive, considering that the market is finding buyers just underneath. We have wiped out the green candle stick from Monday, for the most part at least. There is significant support underneath, so it’s likely that we will find buyers sooner or later. However, I would be looking to sell rallies again, as we clearly have a downward bias as of late.

Gold Price Predictions Video 17.05.19

One can look at the EUR/USD pair to see just how strong the US dollar has been, and the fact that the EUR/USD pair is essentially rolling over tells you that there is more and more demand for the greenback. As demand for the greenback rises, typically demand for gold will fall. This doesn’t have to be the case, as was seen last Monday when there was a complete panic in the stock markets. At that point, people were buying the US dollar to buy US treasuries, and of course selling stocks while buying gold for safety. Under normal circumstances though, this market does tend to move countercyclical to what’s going on with the greenback.

To the downside, I see the $1275 level as crucial support, so if we break down below there gold could really start to unwind. At that point, I would expect a move to the $1250 level rather quickly.

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