Gold markets pulled back a little bit looking for support. We did find support on Thursday, and then turned around to show signs of bullish pressure. At this point, I think we need to clear the $1260 level II open up to a move to the upside, to the $1275 level in the short term. Overall, we have been consolidating between the $1200 level on the bottom, and $1400 on the top. Breaking above the $1250 level is the first sign that resistance is starting to give way. That being the case, I think that we could grind higher given enough time. That doesn’t mean that it’s good to be easy, but I do think that gold is trying to make its case for a move to $1400.
Gold Price Predictions Video 14.12.18
The alternate scenario is that we break down below the 50 day EMA, and that could send this market back down to the $1200 level. Pay attention to the US dollar, so if it rallies, that could be negative for gold. Otherwise, if the US dollar starts to soften a bit, that might be reason enough for gold to rally. I think at this point we could also get a bit of a safety bid, meaning that the Gold markets may rally just due to fear. That can happen simultaneously with the US dollar so don’t take the US dollar correlation as gospel. Ultimately, it’s only a matter time before we rally from what I see, but if we break down below the 50 day EMA, then we need to watch the $1200 level, because breaking down below there could open the door to $1000.