Gold Price Forecast – Gold Markets Bounce On Wednesday

Gold markets rallied a bit during the trading session on Wednesday as we continue to see a lot of noisy action in this market. The 50 day EMA is just above, and that of course will offer a bit of resistance. It is very likely that the market will simply grind in this general vicinity and therefore it’s likely that a lot of choppy behavior will be the mainstay of this market. That being said, if we can break above the $1500 level then you can continue the longer term uptrend. Otherwise, if we were to break down below the $1450 level it’s likely that we will go looking towards the 200 day EMA.

Gold Analysis Video 12.12.19

This market is currently in a downtrend in channel, and as a result it’s likely that the overall downtrend should continue unless of course we get some type of catastrophic situation globally in either the US/China trade war, global growth, or anything else like that. Ultimately, this is a market that continues to be very choppy but at the end of the day we are at major support level so there are a lot of questions it will be answered. At this point, small position sizing is going to be crucial, and therefore it should be paid attention to as far as risk to your account is concerned. From a longer-term standpoint I do like the idea of gold but quite frankly this is a market that also has been paying attention to the Federal Reserve, and therefore monetary policy. Right now, it doesn’t look like they are anywhere near loosening, if that’s going to be the case that continues to be a bit of a drag on gold all things being equal. Expect a lot of choppy back-and-forth trading, so discretion is crucial.

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