 Hello and welcome to the chart of the week video with me David Madden. Today's date is Thursday the 21st of June 2018 and the time has just gone 1135 British summertime. This week's chart of the week is the gold market and Gold has fallen to a fresh six-month low on the strength of the US dollar There's actually been a inverse relationship between the gold market and the US dollar and given that the US dollar index has reached 1135 if no surprise that the gold is under pressure. So we've fallen to a level not not seen since December back last year only yesterday Jerome Powell the head of the Federal Reserve stated is the case he made for additional tightening in terms of interest rates in the United States and now the speculation It's continued speculation. We could see two more rate hikes from the Federal Reserve this year Keep in mind. We've already seen two so far There's already shattered that we could see another very high from the Fed in September and also one in December But this is obviously dependent on an economic situation in the US and also what's going on with the potential trade war So taking a look at the price action of gold since since April We can see it's been in a classic example of a downward trend We can see the first leg lower here lower low and lower high and lower low and lower high And then yet again another lower low So it's a test for example of a downward trend in the gold market If you take a look at the MACD histogram mark the indicator We can see that the momentum has turned negative and it's actually increasing So as the gold market is driving lower, you'll actually see an increase in setting pressure So they would at the time being the momentum is with the bears So if it could if the gold market does continue to push on lower from here We could looking look at a targeting 1250 or indeed the December low of 1236 And if you go beyond that we could be looking any back down towards the 12th 20th region or perhaps even as low as 1204 if you do see any pullbacks in the gold market Resistance could commit to play in around 1284 this high here only only a few sessions ago And if you go beyond that I know to keep a mile for where it will be this red line here The dirty moving average which comes into play at 1305 and notice how the dirt the dirty moving average acts as both support and resistance in recent weeks When a market when an indicator as active recently acted as support and our resistance it makes it the more likely It will do so in the near future. And if you take out 1305 the attorney moving average the next year to keep a mile for will be the the high of May in mid-May at 1326 And if you go beyond 1326 that could be an indication that the recent downward trend in gold has come to an end And if you go beyond 1326 the next 30 keep a mile for will be the 1335 region. Well, that's all for me this week Thank you very much