Gold prices had a great start to 2019, and in mid-February prices had reached $1347.8 and thereby produced a gain of 5.05% on the year. However, since then gold prices have retreated as inflation reports across the world showed that inflation was no longer a problem, and as the demand for gold as a haven declined with stock markets recuperating large parts of their October – December losses.
Going forward the outlook is looking grim if the major head and shoulders pattern from the start of the year is to be trusted. The January 10 high of $1297 qualifies as the left shoulder, while the March 25 high at $1324 as the right shoulder, and the February 20 high at $1346 as the head. The neckline of the Head and Shoulders pattern goes via the January 24, March 7, and April 2 lows.
Follow and interact with Alejandro on Twitter at @AlexFX00.
Going forward the outlook is looking grim if the major head and shoulders pattern from the start of the year is to be trusted. The January 10 high of $1297 qualifies as the left shoulder, while the March 25 high at $1324 as the right shoulder, and the February 20 high at $1346 as the head. The neckline of the Head and Shoulders pattern goes via the January 24, March 7, and April 2 lows.
Follow and interact with Alejandro on Twitter at @AlexFX00.