Gold markets have broken down significantly during the training session on Friday as the 50 day EMA has caused a lot of resistance. Beyond that, the market continues to race towards the $1450 level, that’s an area that of course will cause a lot of interest, as it was the previous resistance from an ascending triangle. It also should be supportive, and therefore it will be interesting to see whether or not that holds. If it doesn’t hold then I think the goal market probably goes reaching towards the 200 day EMA. That would be the beginning of a major downtrend level if we break that level.
Gold Price Forecast Video 09.12.19
Turning back around to show signs of strength could send this market towards the 50 day EMA but I think it’s very unlikely to happen. The $1480 level above will be difficult to break above, but if we do then it’s likely that the $1500 level above will be targeted next, and if we can get above there it’s likely that the market would change the overall trend. All things being equal, this is a downtrend channel that we are still in, so it really at this point it’s not until we break out of this channel that you can remain bullish. Gold looks very vulnerable, and at this point if we get some type of good news over the weekend, gold could break down significantly. This will be especially true if it has something to do with the US/China trade relations, specifically for comes out of Beijing. Gold is looking very vulnerable at this point. However, it should be noted that the $1450 level has been massive support.
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This article was originally posted on FX Empire
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