Gold Price Soars Through Resistance, Consolidation Needed Ahead of Next Push


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Gold Price, Analysis and Chart

Golddriven by dovish Fed speak although comments backtracked. Technical set-up needs strengthening before the next move.

Q3 2019 Gold Forecast and Top Trading Opportunities

Gold Bursts Through Technical Resistance

We noted recently that Gold was being constrained by a pennant set-up and that a breakout was likely as the support and resistance trends converged. This formation normally sparks a break-out as buyers and sellers battle to gain control.

Gold Price Nears Sharp Breakout, Silver Price Needs a Driver

Thursday's price action took out the resistance line and allowed Gold to rally to its highest level since May 2013. The precious metal now needs to consolidate above the old resistance trendline before the next push higher. The move was sparked by comments from NY Fed vice chair John Williams who said that the Fed shouldact quickly to lower rates at the first sign of economic weakness.These comments were rowed back slightly later when Williams said that this was commentary from an academic paper and not solely market based.

How to Trade Gold: Top Gold Trading Strategies and Tips

Gold Price Daily Chart (January – July 19, 2019)Gold Price Soars Through Resistance, Consolidation Needed Ahead of Next Push

Looking ahead, Gold seemingly has a clear run up to the $1,500/oz.+ level, all things being equal, and may re-test an old gap on the April 08, 2013 weekly candle between $1,496/oz. and $1,540/oz.

Gold Weekly Chart (November 2012 – July 19,2019)Gold Price Soars Through Resistance, Consolidation Needed Ahead of Next Push

Both charts however show that Gold is currently heavily in overbought territory – using the CCI indicator – and the precious metal may need to consolidate further before making its next move. On the daily and weekly charts all three moving averages continue to remain supportive.

Trading the Gold-Silver Ratio: Strategies and Tips

Traders may be interested in two of our trading guides –Traits of Successful TradersandTop Trading Lessons– while technical analysts are likely to be interested in our latestElliott Wave Guide .

What is your view on Gold – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author or via Twitter@nickcawley1 .

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