Advertisement
Advertisement

Gold Weekly Price Forecast – Gold markets fail to rally

By:
Christopher Lewis
Updated: Nov 23, 2018, 18:32 UTC

Gold markets tried to rally during the week but gave back most of the gains to form something akin to a shooting star. Because of this, the bearish flag on the chart is something that I’m paying close attention to.

Gold weekly chart, November 26, 2018

Gold markets rallied a bit during the trading sessions that make up the weekly candle but gave back most of the gains. The shooting star like candle suggests that we are probably going to try to rollover, and the bearish flag that I have marked on the chart signifies that we could go as low as $1000 if we can break below the $1200 level. Ultimately, this is a market that is going to move opposite to the US dollar. If the US dollar strengthens, that should continue to put the Gold markets under serious pressure.

Gold Technical Analysis Video 26.11.18

The $1250 level above being broken to the upside would be very bullish though and negate the bearish flag. If that’s the case, then I think we go looking towards the $1400 level which is the top of the overall consolidation that we had been in. Ultimately, I think that money continues to flow into bonds, and does put a certain amount of bearish pressure on gold as the US dollar strengthens. The $1000 level underneath has been a major milestone in the past, and it will of course attract a lot of attention. If we do turn around and break above the $1250 level, it’s likely that we will find reasons to grind higher and towards the top of the consolidation, but I would expect a lot of choppiness and it will be a trade that you need to be very cautious with and keep low leverage overall. I do believe in Gold longer-term, but we may need another leg lower.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement