Gold Prices Under Pressure
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Today is known as April Fool’s Day and the big question: is gold fooling us with a false breakdown or is there more selling to come? Based on the pattern, it appears gold will test the $1,280 level before we can expect any rally of substance.
Friday’s action was bearish with gold trying to breakout above $1,300 again only to fall back below and fail. Once again, this morning gold is trading under $1,300, headed for a test of $1,280. The $1,280 level is crucial for gold to hold if our expectations are for the longer-term rally to continue.
As we have witnessed through March Madness and the wild finishes to many of the basketball games, we can expect the same wild trade in gold. The tops could very well be in although we still have a bullish outlook for 2019. However, the pattern suggests there is some trouble now and lower levels will be tested.