Gold: Surprise! The head-shoulder-formation still in play
Source: Economic Events May 27, 2019 - Admiral Markets' Forex Calendar
The start into the new week will potentially be quite unspectacular thanks to the bank holiday 'Memorial Day' in the US, shortening the trading hours. This also holds true for precious metals like gold (Trading Hour Schedule for the May 2019 Holiday Period, including Memorial Day).
That said, the market environment today will be very thin and most likely unspectacular, still, the technical picture for Gold in the coming days remains very interesting.
While the head-shoulder formation seemed to be off the table for a brief while, the technical developments and price action over the last week could deliver some tailwinds for the bears.
In fact, the Head-shoulder formation in stays in play as long as we trade below the right shoulder at around 1,310 USD on a daily time-frame.
If, over the next few days, a next stint towards and below 1,266 USD is successful, further losses in Gold are to be expected with a first projected target around 1,230/235 USD.
On the other hand: with 10-year US Treasury yields reaching new yearly lows last week, and the potential for any new trade war escalation driving a risk-off-mode in markets happening nearly every time, a sharper push higher in Gold and potentially above 1,310, remains an option, too:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between February 22, 2018, to May 24, 2019). Accessed: May 24, 2019, at 10:00 PM GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.
Investing in Forex with Admiral Markets
Admiral Markets offers professional traders the ability to trade with a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5 Supreme Edition!
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
- Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
- To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
- The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
- Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.
