Gold Price Returns To Trading Below $1,300

May 17, 2018

London (May 17)  Gold breaks down major support and crosses down 1305 $ , also we can see that Gold failed to break up the upper bounder in 1360- 70$, we can see very clearly on the charts - trading between 1200-1360+- areas.

The big question is when this shuffle trend will finish: will it go to 1400$ Or 1100$?

We have also others facts about US dollar and gold prices such as high yield, interest rates, geopolitical and other factors which could spell out less monetary policy tightening this year.

The data over the past 47 years is clear: Gold rises more when inflation is higher than when it is lower, So if inflation heats up this year, history says the gold price will move higher.

If inflation becomes a new reality, it could easily start the next major bull market in gold.

Gold price technical analysis view :

As long as gold xau/usd stay and trade below 1305+_ the trend became bearish and targets are 1267 1240 1207 , for short-term strategy if gold remains above 1291, I’m expecting to meet 1347 1333 1326 1315 areas - break down 1291 level will lead the gold go to 1247-1256, while we need to watch at 1268-1274 area.

Also, there is the price band is imprisoned between 1207 and 1346 Strong support: 1224-1233 price areas are meaningful numbers and the big trend support stay in 1207.

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