Technical outlook for gold prices:
- Gold The weakness of the May 2019 trend lines would be a good test
- The 200-day has been a difficult place for a short time
- FOMC at the meeting, things may move with a clearer trade reason
Gold price forecast – could be put to the trial week
Next week’s FOMC meeting may help gold clarify trading prejudices. At present, gold has sunk slightly and is considered to be potentially lower accelerating. But not too far away is the trend line from May 2019, which may bring us a clearer trading principle when tested.
The trend line has a rather long meaning, given its length and recent test and maintenance. Declining and shutting down a line can offer good upside risk / return trading, whether you are a short-term trader or someone looking at the potential of a big picture rally.
If gold does not keep the trend line and the year 1750, a larger movement to the spring low of 1676 may develop. This step would significantly undermine the broader perspective.
If gold continues to hold where it is, it must rise above the 200-day MA and most recently at its highest level in 1834 to return to rise. Exceeding this level would represent a higher and higher altitude in the direction of the August line, which is currently at the level of about 1880.
All in all, gold will be in an insufficient position in the near future, but with a significant level and catalyst (FOMC meeting) on both the upper and lower sides, we may soon have a strong reason to trade.
Gold price chart
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