Gold Price Forecast – XAU/USD Hits a Two-Week High as Risk Markets Crack, Resistance Fractures Splinter, and Bullish Index Strength Unsettled (Stocks Indicate Another Strong Week, and Achieving Gold Price Trends…Forecast: Stocks Indicate Another Strong Week, and Forecast: Stocks Provide Support For Gold Prices (Gold Price Forecast – XAU/USD Hits a Two-Week High as Risk Markets Crack, Resistance Fractures Splinter, and Bullish Index Strength Unsettled (Stocks Indicate Another Strong Week, and Forecast: Stocks Provide Support For Gold Prices (Gold Prices Show Solid Support of the Last Few Days (). Gold prices saw a marked surge on Monday, May 24th as worries over the Fed’s anti-inflation message to markets sent investors scrambling to get out of risky assets. The Gold Price Forecast – XAU/USD Had its Biggest One Day Rally in Its History (As part of the Flash Crash course I am doing to train investors to recognize the different signs of price and economic uncertainty, I believe Gold is at a very important juncture in its history. In the next few days the gold market will experience a large sell off as traders realize the risk of buying low and selling high is about to hit a wall. In this article I will discuss the implications for investors who are following Gold Price Trends.
With trade volume being lower than the last week (the lowest since November), I am expecting the market to be volatile throughout this week. However I believe the recent rally in XAU/USD as we approach the end of the quarter can still result in another strong run for this week. When the sell off begins (by the end of the week) the picture should clear up further, signaling a consolidation phase in the gold market.
Given the recent sell off, I have re-adjusted my position in the Gold Price Forecast – XAU/USD and now consider it a Buy. In addition to the recent strength in the gold price, I believe the metal is just waiting for the next economic and political crisis to start to strengthen. The last thing gold needs is another sell off!
I would be very surprised if another sell off is not further delayed by the week. As I noted before the decision of the Federal Reserve to hold off on its inflation message is only going to make gold stronger because they are well aware of how serious the crisis has become.
In summary, I am seeing gold price trends really start to break down in a dramatic way this week. I would be very surprised if the news from the European countries did not catch up with the US market, and the problem will become more severe in a couple of weeks.