Gold Price Forecast – Gold markets continue to press resistance

Gold markets rallied a bit during the trading session on Thursday, breaking above the $1275 level. That is the top of the up trending channel, so the fact that we broke above there is a reasonably strong sign, but we have not cleared it definitively yet.
Christopher Lewis
Gold daily chart, December 28, 2018

Gold markets tried to break to the upside, as the US dollar has been a bit of pressure applied to it, but I think that if we pull back from here we should see buyers at the $1255 level. The 50 day EMA underneath there should offer a lot of support as well. I think that gold is trying to break out to the upside, perhaps reaching towards the $1400 level which is the top of longer-term consolidation.

Gold Technical Analysis Video 28.12.18

At this point, I think that the market should continue to find plenty of value hunters, and I think that the $1200 level underneath is the bottom of massive support. That is the bottom of the longer-term consolidation that we have been in for quite some time, and if we were to break down below there I think then we could go down to the $1000. Gold markets will continue to be very choppy to say the least, so I would be cautious about the amount of leverage that I put into the market. Buying physical gold of course is a good trade for the longer-term, but if you are going to play the leveraged markets, then I think that you should be very cautious, as we have a lot of work to do in order to continue to go to the upside. I think that you probably will have to look for short-term pullbacks on smaller time frames such as the 15 minute chart but following the daily attitude.

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