Gold Price Forecast – Gold markets continue to struggle to break outGold markets initially rallied during the trading session on Tuesday but turned around of form a rather weak looking candle. We are hovering around the $1250 level, an area that had been massive resistance. The fact that we can’t continue to go higher is a bit concerning.
Gold markets initially tried to go to the upside during trading on Tuesday, but we have turned around to show signs of exhaustion, breaking down to the $1250 level. Overall, I think at this point it’s likely that we will probably pull back, but I think the 50 day EMA underneath should offer a bit of support. Alternately, if we break above the highs of the last couple of days, we could go much higher, perhaps reaching towards the $1275 level. Overall, this is a market that continues to see buyers underneath, but if the US dollar continues to strengthen it could continue to weigh upon the gold market.
Price of Gold Video 12.12.18
I think that gold markets will continue to be very choppy, and if the Federal Reserve looks to continue to raise interest rates, it could continue to put bearish pressure on gold. Quite frankly, I think that we continue to grind higher over the longer-term, but it’s more of a channel that we are trying to form than anything else. If we do break to the upside, I think the $1400 level will be the ultimate target, as it would be the top of the overall consolidation that we have seen for months. I don’t think it’s necessarily going to be easy, so low leverage positions are crucial, and therefore I think that the “buy on the dips” mentality can work, but you will have to be very cautious and be able to have wide stops.