Gold Price Forecast – Gold markets show signs of exhaustion

Gold markets rallied initially during the trading session on Friday, breaking above the $1350 level. That being said, we did not pulling back from there and forming a massive shooting star.
Christopher Lewis

Gold markets initially rallied during the trading session on Friday but have shown so much in the way of exhaustion that we turned around to roll over and form a shooting star. That of course is a negative sign, as we have seen the $1350 level offer resistance in the past. That being the case, I think that we are going to see a bit of a break down from here, and if we break down below the bottom of the Friday candlestick that would be my trigger. The market could drop back down towards the $1325 level underneath which is massive support.

Gold Prices Video 17.06.19

The other side of the coin of course is that if we can break above the top of the candle stick from the Friday session, then we will go further to the upside. Obviously, this will have a lot to do with global risk appetite, which is all over the place right now. There are plenty of headlines out there that could cause issues, so this will be highly news driven at this point. With situations between the US/China trade relations, the Brexit, stock markets being a bit frothy, and a whole host of other things including possible military tensions in the Middle East, you can make an argument why gold would probably go higher. However, the technical analysis doesn’t tell us the same thing necessarily, and that we may not be quite ready to break out. If that’s the case, I suspect short-term pullback is probably in the cards. If we were to turn on a break down below the $1325 level, that would be very negative to say the least.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.