Gold Price Forecast – Gold markets get wild ride for MondayGold markets rallied significantly after initially selling off on Monday. With word coming out that the Chinese were going to continue the trade war going forward, as they have retaliatory tariffs coming out, the markets were a bit chaotic to say the least.
Gold markets rallied significantly during the trading session on Monday, after initially selling off. By breaking above the 50 day EMA, we then pressed against the crucial neckline of the previous head and shoulders pattern that I have been paying attention to. The fact that we have broken through this suggests that perhaps the neckline is now going to be irrelevant. However, it’s not until we get a daily close above the $1300 level that I would completely wipe this off the chart. After all, we could later on get selling to break back down below the neckline.
Gold Price Video 14.05.19
If we do roll over, I believe that the 200 day EMA is going to offer support, as shown by the blue line on the chart. This is a market that continues to be very challenging, mainly because we have so many different headlines crossing the wires at any given moment that throw the market into various different directions. Because of this, I suspect that the market participants will continue to think more short-term than anything else, as the moves have been so violent.
As per usual you will need to pay attention to the US dollar, and of course risk appetite. Gold is going to continue to be very difficult to trade so I would implore you to please use small positions, because an incredible amount of damage can be done to your account in this type of environment. Do not look for major gains, rather look to protect your trading capital.
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