Gold Price Forecast – Gold markets show signs of exhaustionGold 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.
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