 Hello and welcome to the chart of the week video with me at David badden today's date is 30 the 8th of August 2019 and the time has just gone 1135 for the summertime and this week's chart of the week is gold Quick snapshot the gold market has been on a major run Recently and only yesterday it racked up yet another six-year high There's a number of reasons for this Essentially Combination of the software US dollar with the very much risk-off attitude of traders has really just kind of poured money Into markets such as gold silver the Japanese yen a classic fight the quality plays We've seen a major plunge in in government bond deals in the last few days We've seen a number of central banks cut interest rates in the last few days. This is all Kind of us, you know, this is really highlights the fear that's within the financial markets and gold is one of the biggest benefactors I mentioned about the software US dollar the perception is the Fed reserve Even though the cut rates last month the perception is they're going to be calling it be going to be cutting rates again possibly September possibly December And that is and the and just even the talk and the chatter of rate cuts from the from the Fed As softened up the US dollar and seeing as the you seeing as gold like other commodities is traded in US dollars It is worth keeping an eye on what's going on in the in the dollar market So if you take a look here at the dollar index the upward move here We saw at the end of last month was in relation to the to the to the rate cut and the commentary initial commentary Which didn't exactly spell out further rate cuts But the the ratcheting of trade trade tension between the US and China Not too long after that led to a fairly sizable sell-off in the green back There's no coincidence that we've seen a downward movement in gold In the US dollar on that flip side. We've seen a positive move In gold it's also worth keeping an eye on what's going on in silver Dow theory tells us that the averages must confirm each other and It's quite often the case that gold and silver move in the same direction So if you take a look here at silver, we can see that that we've had since late May We've had a nice series of higher highs and higher lows Actually, we had a major move the upside instead of a yesterday and it's only yesterday silver in his silver in his highest level since since last since June last year so June 2018 so not so it's pushing in the same direction. So therefore while all while I'm Both markets are hitting kind of multi-year highs Well gold silver just over a year high gold just over a multi-year high We can look at if we can more confident that the wider upward trend is going to continue in gold So we can see here the markets been pressing higher on the MACD indicator And the MACD histogram is a steady increase in positive momentum. So we've been more confident that the upward trend is going to continue Taking a look at the wider view on the date and the weekly chart. We could see here At the market has been aggressively pushing higher over the last Essentially going over over two years now and if you take if you do the Fibonacci retracement from the highs of 20 August 2018 to the lows of December 2015 we could see here at this particular metric the 38.2% retracement from that downward move has been a significant level on a few occasions It's in around 1380 1375 is a price and we could see on a few occasions that that level has been significant Precisely when that level was actually cleared in June of this year If you do manage to kind of press on higher from here These these levels currently are just shy of 1500 if you can press on higher from here We could be looking at target in this region here in around 1555 it's also worth noting Looking at the lows of July 2012. There's been a series of kind of lows here They're in around it also been around the kind of 1560 mark So 1555 1560 I could potentially be an area For resistance if the if the the bullish move that was seen in gold continues Now it is worth pointing out. We did see a size of the move between late May and And late and late June and then we saw a bit of sideways trading for a for a number of weeks before we had the next leg higher It is it is possible That we could see something similar whereby the gold market at a trade sideways for a base or maybe even as a bit of a Retracement for a while. Like I said, I think the Federal Reserve are speculated to be cutting rates in in September It's possible. We could see gold out of drift off before then afraid sideways until we get that news So if we do see any move to the downside in gold We could see buying on the dip. It's been a popular strategy in recent weeks of months So if the market does manage to move lower in around this area here 1453 down to 1330 that zone could act as resistance possibly even down as low as the as the full the cycle as you point 1400 mark and Essentially as long as we hold both say at this region here in around 1381 1382 the lows of Early July that also kind of coincides with that 38.2 retracement I was talking about earlier So essentially as long as we hold above that it's likely that the wider upward trend in gold could continue If you've any comments to make in this video or any of the other videos we've made here at CMC markets Please feel free to leave review on reviews. Thank you very much