Gold Price Forecast – Gold markets break out

Gold markets initially dipped a little bit during the trading session on Wednesday, but then broke above the top of the up trending channel, which of course is a very bullish sign. Now that we have made this move, I suspect that pullbacks should be buying opportunities, especially considering that the Federal Reserve now looks like it’s going to be a little less likely to raise hikes three times. I think that the 50 day EMA underneath should continue to offer support, just as the $1255 level will. This market should continue to reach towards the $14 level over the longer-term, as we had been consolidating for some time.

Gold Technical Analysis Video 27.12.18

If we break down below the 50 day EMA, then I think the market would probably go looking towards the bottom of the channel, perhaps even the $1200 level. If we break down below the $1200 level, that could send this market much lower, perhaps reaching down to the $1000 handle. That would take a significant US dollar strength, so at this point I think it makes more sense to simply buy dips and ride out the volatility. Now that we have clearly broken out to the upside, I will use levered instruments to take advantage of what is an obvious move to the upside. I recognize that we are a little bit thin at this time a year, as volumes will dry up between holidays. However, I still think that this breakout was very likely to happen anyway, and now we are starting to see a bit of momentum.