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Christopher Lewis

Gold markets have initially rally during the trading session on Thursday, but then pulled back to form a little bit of an inverted hammer. Ultimately, the market is likely to move back and forth based upon the US dollar. Quite frankly, the US dollar is getting absolutely killed right now, so it is not a huge surprise to see that we give back about half the gains. Having said that, which particularly interesting is that gold does seem to be willing to hang on to the 50 day EMA, so that shows that perhaps maybe gold traders are not necessarily convinced about the death of the US dollar.

Gold Price Predictions Video 05.06.20

Looking at this candlestick, it is at the bottom of a symmetrical triangle, so that is worth paying attention to as well. I believe that if we break above the top of the candlestick during the trading session on Thursday, then we go looking towards the top of the range near the $1750 level. This is a market that is somewhat thin, and of course there are multiple moving pieces out there that could send this market screaming to the upside. Yes, I recognize that we are in the midst of a major “risk on rally”, but at the end of the day there are so many moving parts out there that could cause problems it is extraordinarily difficult to get comfortable shorting gold anytime soon and of course we have plenty of support levels underneath.

For a look at all of today’s economic events, check out our economic calendar.

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