Gold Price Forecast December 18, 2017, Technical Analysis

Gold markets continue to be very noisy in general, as the US dollar has been noisy. I believe that the $1250 level was significant as it is “fair value” of the longer-term consolidated area, and therefore I think that it makes a lot of sense that the market to be difficult to play in this region. Because of this, I think that waiting for some type of impulsive move is probably the best way to go, but one thing I would point out is that the weekly candle looks a bit like a hammer, so it’s likely that we should see buying pressure given enough time. Once we break above the $1260 level, we should go to the $1275 level next, which is its own resistance barrier. Longer-term, we could go to the $1300 level next, but it’s going to take a while.

If we break down below the $1250 level, I think that the $1240 level is massively supportive. The volatility continues to be an issue, but one thing that I would point out is that the stochastic oscillator on the hourly chart is oversold, and crossing to form a buy signal technically speaking. The market should send gold prices higher, especially if we continue to see more of a “risk on” attitude in general. Also, gold gets a boost higher when there are geopolitical concerns, so it’s only a matter of time before somebody does something to freak people out. That would also be good for gold and could send money into this commodity. Adding slowly on the way up is how I plan on playing the gold market.

Gold Prices Video 18.12.17