We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
  • The gold-silver ratio is simple. It is the number of silver ounces you would need to trade to receive one ounce of #gold at current market prices. Find out how you can use this in your trading strategy here:https://t.co/kh5DZvv5ib $XAUUSD https://t.co/eJGODpfTNc
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
Gold Prices – Long Term Contraction Continues

Gold Prices – Long Term Contraction Continues

2019-05-03 14:48:00
Paul Bratby, Trade the Fifth,
Share:

gold prices squeeze inside triangle pattern

Gold prices have been in a contracting bullish range since the pivot low formed in December 2015. The monthly chart below suggests the pivot low was an Elliott Wave 4 pullback. The lower trend line going back some 10 years has been respected during this recent contraction period.

Gold has had difficulty overcoming $1370 despite the recent strength with equities. Therefore, a strong level of resistance at the horizontal line can be viewed on the monthly chart below.

It is possible to view an ascending triangle chart pattern forming over the last few years with that horizontal resistance level and the rising trendline. Typically, the price breaks out in the same direction as the trend that was in place just prior to the triangle forming. In this case, we could say that the wave 4 low could be tested again.

This assumption is not always the case and I am looking at equity indices making new highs but not with heavy volume. This combined with inflation worries in the United States coupled with the Fed likely to raise interest rates in June, could be a catalyst for a bearish correction in the stock markets.

If this happens, gold prices may react positively as investors seek to reduce stock holdings and invest in gold for safety. This could be the catalyst for XAUUSD to finally break through $1370 with enough momentum towards our 5th wave target at $2150 (blue zone on chart below). This is backed up with the divergence being shown on our Elliott Wave Oscillator over this longer-term period as can be seen on the monthly chart below.

(Understand a little more how the MT4 Elliott Wave Indicator Suite works here)

gold price analysis using longer term trends.

you might be interested in…

Trading the gold-silver ratio

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.