Gold markets initially tried to rally during the week but found enough resistance at the $1425 region to roll over yet again. The $1400 level is holding the market up a bit, offering support but quite frankly this is a market that I think will break down eventually. It’s not that I’m not bullish of gold, it’s just that the market is overbought and obviously exhausted. The question now is whether or not the Federal Reserve will come to Gold’s rescue? I suspect they will given enough time.
Gold Technical Analysis Video 15.07.19
Looking at this chart, I think the most obvious support level is going to be the $1350 level, as it is not only a round figure, but it is also the 50% Fibonacci retracement level, which of course will attract a lot of attention. Ultimately I believe that a pullback to this area will be a nice buying opportunity that we can take advantage of. The alternate scenario of course is that we break above the shooting stars, and the fact that it is a triple shooting star being broken to the upside would be an extraordinarily bullish sign. At that point, the market will probably go somewhat parabolic.
The market participants will continue to look at the Federal Reserve for clues as to what monetary policy will be, and although we know that there will more than likely be an interest rate cut in July, the question then will focus on whether or not there are more to come. If there are, Gold will go much, much higher.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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