Gold Price Forecast – Gold markets stabilize for Monday

Gold markets fell a bit during the trading session on Monday, reaching down towards the $1275 level before finding buyers. This is a market that has plenty of support just below, and I think rallies at this point will continue to show selling opportunities, as we have decidedly become bearish over the last several months. The last couple of sessions have been extraordinarily negative, and therefore it’s not a huge surprise that the market had to take a little bit of a breather. However, I think that it’s only a matter time before the sellers come back so I’m looking for short-term exhaustion to start selling again.

Gold Analysis Video 21.05.19

The $1290 level above is a major resistance barrier in the form of the 200 day EMA and of course structural movement, so I think at this point it’s likely failures will be jumped upon by the market participants. Yes, there may be a bit of a safety play when it comes to gold, but at this point it’s only a matter of time before we can start shorting this market. If we were to break down to a fresh, new low, then obviously it’s very negative sign as well. I have no interest in buying gold, at least not until we break above the downtrend line, which is quite a bit of ways from here, near the $1300 level. A break above there would of course change the entire outlook of the market, but right now it doesn’t look to be very likely.

Please let us know what you think in the comments below