 Hello and welcome to the chart of the week video with me David Madden today's date is Friday the 7th of June 2019 and the time has just gone 1128 British summer time and this week's chart of the week is a gold market. I take a look at the wider term view All the back from after August last year We can see that the gold market has made a fairly remarkable recovery We've had a huge rally between August and February of this year. Then we had a fairly Pretty good example of nice downward trend like series of lower lows and lower highs But very recently we've seen a sharp move to the upside again in gold So this could be this price action we've been seeing here in late in late May and early June Could be that the sign that gold is Is continuing in its wider upward move that has been in since August last year If you take a look at the price action here The market managed to very quickly take out the highs of mid mid May Of early April and also even of late March all in a fairly short space of time And if you continue to press on higher from here and if you hold above this here area here in around 1324 we could look and retesting The February highs in around 1346 and if you do manage to have a sizable break of 1313 146 we could be looking heading to towards this area here in around 1366 price That hasn't been seen since April April 2018 We've talked about you know that the gold market and they kind of move to the upside But it is worth pointing out since late since late March Just so this is late May rather just over a week ago The gold market has managed to rally four and a half percent It's quite a size of the move and to perfectly honest if you look at how steep this upward move has been It's fair to say it's almost a straight line It's extremely steep and it's not particularly usual for markets to Run in such a steep line for a long period of time So it is possible that we might see a bit of a pullback That should that be the case not say that the market would completely turn over on itself Just more that the market could pull back on itself I might have a more that's somewhat much like all a more kind of you know Even or normal upper trend I can work if you can imagine you know I'm working on a 45 degree line rather than almost straight up So we could see a bit of a pullback in gold in the near term Should we move to the downside should we take take office area here in around 1324 1320 We could be lucky heading back down towards you got a 1310 to kind of 1300 level And if you do have a slice of a break below that We could be lucky heading back down towards this blue line here the fifth of the movie average which comes into play at 1289 and you know this how on a few occasions This bit this particular metric managed to act as both resistance and support in the not too distant past And if a metric has been important in the past It makes it more likely that it will be be of importance in the future. Obviously, there are no guarantees And it's only really if you have a slice of break below that could be looking it be us be retesting Well, that the lows of the lows of April in around 1266 and then it should not be the case that could be an indication that the downward move that we saw February through April May. I could actually be continue on and we can be looking at pressing on lower again If you are going to be trading the gold market, it is worth your while keeping an eye on what's going on in the US dollar The US dollar index It's been a fairly strong inverse relationship between the gold market And the city and the at the US dollar. So this is the US dollar index here So if you take a look at twice action since late May, there's been a sharp move to the downside in the US dollar index Like that's coincided with the very sizable move to the upside in the gold market with that we saw in late in late May In a couple in about two hours time at 13 30 British summer time We're gonna have the US non-farm parents report and we're expecting to see quite a bit of volatility on the back of that So if you are going to be trading the gold market or any definition markets, please keep an eye off of that Just to let you know we actually were hosting a live webinar event Which you can feel free to sign up for It can be found on our website cmcmarkets.com under the learn section. You'll see it here webinars and events This is the particular event the question here. So feel free to sign up for that And finally if you have any comments to make on this video or any of the other videos We've made here at cmc markets. Please feel free to leave a review on google views. Thank you very much