Gold Price Forecast – Gold markets roll over

Gold markets initially tried to rally during the trading session on Wednesday but found a ton of resistance above at the devious neck line, and therefore it’s likely that we will continue to see exhaustion and a roll over towards the $1275 level. Remember, the US dollar will have a great influence on what happens next, and of course risk appetite will fluctuate wildly due to the US/China trade relations situation, and of course all of the other things going on around the world with global growth.

Gold Price Video 09.05.19

Looking at this chart, it’s not until we break above the top of the candle stick for the trading session on Wednesday that I would consider buying gold, and I do think that this latest candlestick shows just how negative this market could suddenly become. The head and shoulders pattern suggests that we could move down to the $1225 level, and of course that should be paid attention to. In general, it’ll be interesting to see what happens next, but it’s obvious that we continue to grind lower overall so if you are patient enough you should do fairly well in this market.

Keep in mind that the 200 day EMA is at the $1277 level, so it’s not exactly like there will be a straight shot down. Overall, I do like the idea of shorting Gold but you may have to drill down to shorter time frames to take advantage of that. Lately there have been an abundance of trading opportunities on the one hour chart and lower based upon shorting.

Please let us know what you think in the comments below