Gold Price Forecast – Gold Markets Continue to Show Proclivity for the Channel

Christopher Lewis
Published: Dec 21, 2022, 16:40 GMT+00:00

The gold markets have rallied slightly during the day here on Wednesday, as we continue to hang around this up trending channel.

Gold, FX Empire

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Gold Price Predictions Video for 22.12.22

Gold Market Technical Analysis

Gold markets have rallied after initially dipping on Wednesday to show signs of resiliency. At this point, it looks like we are doing everything we can to break out, but the question now probably has more to do with liquidity than anything else. After all, the holidays are fast approaching, and that will have people paying attention to other things than trading. Because of this, I think that short-term pullbacks will probably be likely, but that will probably find plenty of buying pressure as long as we can stay within this channel.

As we get closer to the end of the year, there will be serious liquidity issues, so although I am bullish of gold, I also recognize that you could get a sudden headline that sends it in the wrong direction. That doesn’t mean that it would change anything, just the overreactions will more likely than not be possible. I believe at this point in time, the $1800 level should offer a bit of a floor in the market, and it will be paid close attention to. The 200-Day EMA is down at the $1771 level, with the 50-Day EMA rapidly approaching it to form the “golden cross.” I suspect that gold will have a pretty good run next year, and now it’s simply a matter of trying to find some type of value going forward.

On the upside, I would anticipate that a run to the $1875 level is very realistic, but I would not be surprised to see that we go further than that given enough time. Expect a lot of choppy volatility, but I still think that the conditions favor gold going higher.

For a look at all of today’s economic events, check out our economic calendar.

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.

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