Gold Price Forecast – Gold markets rally on Friday
As you can see, the neck line is still above, and it’s very likely that we will pay attention to that neck line from the head and shoulders pattern on an attempt. We have made a “lower low” as of late, but the reaction of the market over the last several sessions lets us know that we are going to chop back and forth more than anything else. We are at the 200 day EMA, so that shouldn’t be much of a surprise either. However, if the US dollar continues to strengthen the Gold markets will be at its mercy.
Gold Prices Video 06.05.19
To the upside we could get a break above the 50 day EMA, and maybe more importantly the neck line from the head and shoulders pattern. If we get that, then we could go to the $1300 level, and then eventually the $1310 level. However, I suspect that the market is going to struggle to make that move. I still believe that the US dollar has some strength left in it, and that will work against gold in the short term. As you can notice on the chart there is a trend line near the $1260 level, so it’s very likely that we are going to test that lien on any significant break down. A break below the $1250 level sends this market much lower, perhaps down to the $1225 level and then eventually the $1200 level. That being said, keep your position somewhat small, we are about to see a lot of volatility.
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