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Christopher Lewis
Gold daily chart, June 05, 2019

Gold markets went back and forth during the trading session on Tuesday as we had gotten a bit ahead of ourselves. We have gained about $40 an ounce over the last couple of days, and that of course is a bit overdone. The $1330 level is an area of rather significant resistance, so a pullback makes quite a bit of sense. This doesn’t necessarily mean that I think we should start shorting this market, just that a pullback to the $1310 level is very possible.

Gold Price Predictions Video 05.06.19

To the upside, we break above the highs for the Tuesday session, we could then go to the $1350 level above. That is an area that will be even more resistive, as it was the scene of the high that started the entire move lower. If we were to break above there, it’s very likely that the market could then go to the $1400 level after that. Ultimately, I do believe that there is a lot of uncertainty out there and therefore it’s difficult to get a grip on this market at times. That being said, you have to ask yourself the following question right now: “exactly who is buying gold at this level after this type of move?” The answer of course is the so-called “dumb money.”

I’d be a bit cautious about shorting here, and quite frankly if you are not involved in gold you probably don’t want to get involved right now. I would anticipate that the $1300 level underneath should be massive support.

Please let us know what you think in the comments below

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