Gold Price Forecast – Gold markets roll over

Gold markets initially tried to rally during the trading session on Wednesday but gave back the gains to test the crucial support level that I have marked on the chart.
Christopher Lewis
Gold daily chart, April 18, 2019

Gold markets initially tried to rally during the trading session on Wednesday, but then fell hard into the $1275 level. We are currently trading at the 200 day EMA which of course attracts a lot of attention, so therefore it looks like we could break down from here and if we do, it’s very likely that the market will go looking towards the $1250 level. This is a market that has sold off drastically every time it’s tried to rally, so I do not trust rallies at this point, and believe that the very best that we could be looking at is a bounce towards $1300, which although bullish would be countercyclical based upon recent action.

Gold Price Forecast Video 18.04.19

If we do break down, measuring what could be thought of as a complex head and shoulders opens the door all the way down to the $1225 level and then the $1200 level after that. If the US dollar starts to strengthen, that could really put a hammering on gold, and send it much lower. This being the case, it looks as if rallies are to be sold and that we will eventually get the break down that I think the market is starting to show. It is hanging in a very precarious level, and it’s likely that the market will suggest plenty of opportunities for short-term traders to try to buy this market but it’s obvious the real money seems to be pushing to the downside. Ultimately, expect volatility but certainly with a negative twist more than anything else as we have seen over the last couple of weeks.

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