 Good morning and welcome to the chart of a week video with me David Madden Today's date is Wednesday the 11th of December 2019 and the time is a scan 902 GMT and this week's chart of the week is gold and gold has been Pushing lower the last few months So the wider view is that we've seen a major rally in September where the metal hit is six year high So they're going to major the verge wider theme is very much the upside But since September we've seen a nice series of lower lows and lower highs like classic example of a downward trend and I'm speculating if the this kind of downward trend were to continue or could we look to go? So we're currently in around 1466 on the on the Current prices if the downward trend doesn't get to need to go and we take out the recent lows here in around 1445 we could be like be heading back down toward this zone here down market of 1430 down to ground on 1400 If you notice here at the market on a couple of occasions the market was on a push tire It tried to get above this blue line here the fifth at a moving average that comes to play at 1480 It tried on successfully a couple of occasions to get past it So that metric is actually very decent resistance in the very near past and the metric is important in the past It makes it more likely that it will be of importance in the future, but obviously there are no guarantees So while it would be remain below the fifth that we would be average. It's likely we could see further ground to be lost on the metal if the other hand we do have a Push higher and I think if the wider upward trend has been in play for some time now if that if that that were to Kick back into place and we work to kind of push above the fifth movie average Enclose above it on a daily basis, but they could be looking towards 1500 you know big psychological number and then if you go beyond that We can then be looking at targeting this zone here in around 1520 I think 1520 this could be the kind of significant level which needs to be taken out Which could be that the the point of which the market The market is signaling that it's a the wider upward trend is continuing I should we go beyond that we can then be looking at retesting this zone here in around 1555 5056 like I said that was a six-year high So obviously any kind of moves beyond that would then be kind of a pretty clear sign That the market is in an upward trend So if you ever trading never trading gold it also work to keep on out what's going on on the silver market Because now theory tells us that the the average is must confirm each other so if a two mark Essentially states of that If markets that are fairly similar are moving in the same direction you can be more confident about markets will continue And I forget to move so as you saw here similar to gold He saw major run-up in the kind of first half of 2019 into the third quarter We had a multi-year high and sit in the silver market and get and guess what since then we had lower lows and lower highs And it wasn't too long ago the silver market fell back to level last seen in August so similar view to silver so While both markets are pressing low We can be more confident that the overall going to downward the kind of near term medium term downward trend in gold Is going to continue Now if you're going to trade the gold market or indeed the silver market and as we're keeping in mind today at 1330 GMT We have US CPI numbers out back That's like that's in volatility to the markets and also today we have the Federal Reserve's interface decision Which comes out at 1900 GMT and the some of the and the first couple follows at 1930 GMT Now it's why they believe the Fed are going to keep interest rates at hold because that's basic They cut rates three times between June and October and the payroll figures for them We're very strong. So what we could see out of the Federal Reserve today is that no change In relation to monetary policy and we could do a language which could suggest Federal Reserve are content to keep monetary policy on hold for some time. Should that be the case that might keep That might give some assistance to the US dollar which can in turn put some downward pressure on the Gold market also keep an eye on what's going up US China China trade developments Whenever we've seen it's not it's not with surprise that we've seen The gold drift lower in recent weeks and months given that not did not go We're at all-time highs in US FD markets and multi-year highs in European markets So any time any time we've received progress on the giant US China trade fund That's kind of added to the downward pressure and gold and conversely whenever things Pensions that have ticked up between the US and China we see Bounds backs are pushes higher in the gold market. So please keep them out What's going on in relation to US China trade to That's all for this week in relation to this video. Thank you for tuning in and please tune in next week. Thank you very much