 Hello and welcome to the chart of the week video with me David Madden. Today's date is Wednesday the 25th of July 2018 And the time has just gone 1205 British summertime. This week's chart of the week is gold And as you as we saw last week gold fell to a one-year low Which really sums up how negative at the sentiment is currently in the gold market If you take a look at the price action since April we can see that the gold market has been a classic example of a downward trend Since then a downward trend is defined as a series of lower lows and lower highs So take a look at the price action from mid April We can see the market move lower here creating the first lower low pushed higher here lower high lower low Lower high lower low lower high lower low last week's one-year low And it's about to push on higher here again The market is clearly in a downward trend and we could expect We've not seen any signs so far that this downward trend is coming to an end It's also worth pointing out historically gold has acted as a safe haven for a safe haven asset Essentially whenever equity traders are worried about the instability in stock markets They've often bought assets that are deemed to be safe such as the US dollar of Japanese yen or some cases gold And it really sums up how negative sentiment is in gold in a period of last couple of months But gold has been selling off we've also seen instability in global equity markets And when gold can't do well in a scenario where equity market is selling off It really highlights how poor sentiment is Historically speaking gold is also had an inverse relationship with the US dollar and the US dollar throughout 2018 I said a fairly good run and anyone trading the gold market should keep an eye on the US dollar because for the last few months It seems that the negative relationship between the US dollar and gold has been quite strong And therefore it's likely to continue in the near term As I mentioned gold fell gold fell to a one-year low last last week And if this negative trend were to continue we could look at good looking at a testing last July is low of 1204 should we go south of 1204 the big psychologically important 1200 number where they come into play and we go south of that we could be looking heading back down towards The low from January 2007 which is in the 1280 region So these are the targets to keep an eye up for to the downside Should the negative move in gold continue any bounce back in price of gold Made one into resistance at this area here 1236 I'll perhaps even we could have this is coming to play in all the 1250 area here The market solidation in the 1250 area and if you go north of 1250 We could be looking at heading back up towards this area here 1266. Well, that's all for me this week. Thank you very much