Advertisement
Advertisement

Gold Price Forecast – Gold markets continue to meander around major level

By:
Christopher Lewis
Updated: Dec 12, 2018, 17:04 UTC

Gold markets rallied slightly during the trading session on Wednesday, as we continue to hang around the $1250 level, an area that has been important more than once.

Gold daily chart, December 13, 2018

Gold markets continue to show a bit of resiliency, as we have seen the $1250 level offer a bit of support as well as resistance. The 50 day EMA is starting to turn to the upside, so I think it’s only a matter of time before we go higher, mainly because Jerome Powell has recently suggested that perhaps the Federal Reserve isn’t quite as hawkish as once thought. If that’s going to be the case, then it’s likely that Gold will continue to benefit from a looser Federal Reserve than originally thought. If that’s the case, then we simply go back to the top of the consolidation area, which is to be found near the $1400 level, an area that is massive in its implications. I don’t think we break above there, unless of course we have some type of panic spike due to volatility and concerns around the world.

Gold Price Forecast Video 13.12.18

I believe that little leverage is absolutely paramount when it comes to the gold market, because we just do not have enough clarity out there to keep the faith in any particular trade. Looking at the longer-term charts, it does make sense that we go higher as the 50 day EMA suggest, but I also recognize that there will be a lot of concerns from time to time when it comes to not only Gold markets, but any commodity market. I believe at this point, it’s going to be choppy but you can add if it works out in your favor. If you over lever, that will be possible.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement