Gold markets drifted a little bit lower during the trading session on Thursday, as volume was very late due to the holiday. Ultimately I believe that Gold is forming a bit of a double top here and could go much lower with a little bit of a push. That doesn’t mean I’m a seller though, what I believe is that we will go lower to try and fill the gap underneath. That could be a move all the way down to the $1360 region. I would love to see some type of bounce from that area to take advantage of, and what I would consider to be a longer-term play.
Gold Technical Analysis Video 05.07.19
The alternate scenario of course is that we break above the $1450 level, clearing all of that resistance and breaking the back of the “double top” that I see right now. This is a scenario that is less likely but could come into play after the jobs figure if we get a sudden shock. I suspect we are looking at a market that is overbought and simply needs to pullback in order to bring in fresh buyers. Once against that I anticipate that gold will continue to go much higher, and I do believe that we are in a longer-term cyclical bull market in this commodity.
This will also be influenced by the fact that the Federal Reserve is cutting interest rates, and very unlikely to do anything but that. After all, it’s what Wall Street wants, and what Wall Street wants out of the Federal Reserve, that’s what they get.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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