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%.
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