Gold markets fell during the trading session on Monday to kick off the week, gapping lower and simply continue to go much lower. The $1330 level is an area that will offer a significant amount of support, but if we break down below the bottom of the candle stick for the Monday session, I think at that point we are very likely to continue to go down to the $1320 level next. Below there, we could unwind some of the overbought condition that we have been in.
Gold Price Video 11.06.19
Gold markets have gotten a bit ahead of themselves for some time, so it’s very interesting to me that we are starting to fade a bit, so the question is whether or not it is a short-term pullback, or are we simply consolidating between the $1350 level on the top and the $1270 level on the bottom? It’s still early to tell, but the one thing that we do know at this point is that we are overbought. Because of this I suspect the next couple of days are going to be negative, but how negative it will remain to be seen.
Pay attention to the US dollar, because if it starts to soften that may lift Gold, or if we get some type of major financial panic, we may see Gold rally again as well. All things being equal, I am bearish for the short term and willing to reevaluate the entire situation somewhere closer to the $1320 level.
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This article was originally posted on FX Empire