At this point, I think that the Gold markets are in a very crucial juncture. The question now is whether or not the $1300 level will hold as support? If it does, then all things will take care of themselves and we should go looking towards the $1325 level. That being said, I also have an uptrend line drawn on the chart that looks very likely to form a bit of a head and shoulders pattern. That of course is a very negative sign. If the head and shoulders were to break down, it measures for a move to roughly $1225.
Price of Gold Video 29.03.19
Pay attention to the US dollar it has its usual influence on the Gold markets, as a rising US dollar can often put downward pressure on gold. In fact, that may be most of what happened during the trading session on Thursday. The question now is whether or not we can bounce significantly to reach towards the $1325 level. I think at this point the next 24 hours will be crucial in the gold market so it might make a lot of sense to stay away. Quite frankly, the market looks likely to offer either a selling opportunity and silver, which is much more likely to collapse than gold, or a buying opportunity in this market. Keep an eye on both charts, they will be crucial going forward and driven by the greenback. The easiest way to keep track of that is to pay attention to the EUR/USD pair. It seems as if the 1.12 level is lining up with supported both silver and gold.
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This article was originally posted on FX Empire