Gold markets did very little during the trading session on Friday as we head into the weekend. Ultimately, this is a market that is going to react to the US dollar and of course fear which we have plenty of right now. That being the case, I look at this chart and I recognize that we could be forming an apex of major support and resistance. I believe that the $1270 level underneath is massive support, so if we were to break down below there this market will go much lower, perhaps even down to the $1250 level, then the $1225 next. The absolute “floor” is probably closer to the $1200 level.
Gold Price Forecast Video 27.05.19
To the upside, we have the 50 day EMA which is offering resistance, just as the downtrend line is that is currently sitting just below the $1300 level. In that sense, if we were to break above the $1300 level it would be an extraordinarily bullish sign and then we could go towards the $1225 level, and then the $1350 level. Breaking this downtrend line allows this market to go higher like that, and at that point I think it’s going to show that the market may have jumped into Gold for safety.
Paying attention to these couple of levels, you can determine where were going to go next. In the short term I expect a lot of back and forth type of range bound trading, something that is an conducive for short-term traders but that’s about it.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Silver Price Forecast – Silver markets slightly lower
- Gold Price Forecast – Gold markets stabilize going into the weekend
- Forex Daily Recap – Cable Shoots on New Prime Minister Hopes
- Corn and Soybean Resumes Uptrends Amid Wet Weather
- AUD/USD Weekly Price Forecast – Australian dollar stabilizes
- GBP/USD Weekly Price Forecast – British pound stabilizes slightly