Gold Price Forecast – Gold markets find supportGold markets pulled back slightly during the trading session on Monday, only to turn around and show signs of support again. We are pressing major resistance, so if we can break above that, gold could take off.
Gold markets have pulled back slightly during the trading session on Monday, reaching towards the 50 day EMA before turning around and showing signs of strength. At this point, the $1255 level above is offering significant resistance, and if we can break above there think we go much higher. This week will be crucial for gold, as the Federal Reserve has an interest rate hike coming on Wednesday, but more importantly a statement afterwards. That statement will give us an idea as to whether or not the Federal Reserve is going to continue to raise interest rates next year, or at least on the same path that people had thought. Otherwise, if the Federal Reserve seems a bit soft, then perhaps Gold markets could take off to the upside. If we can break above the $1255 level, then we will continue to go higher. Beyond that, keep in mind that the 50 EMA is starting to turn higher, so I do think that we are leaning in that direction.
Gold Analysis Video 18.12.18
Ultimately, this market I think is expecting Jerome Powell to be a bit dovish, and if he is at then we could see a massive turn around. I think what we are likely to see at this point is going to be volatility between now and Wednesday, but by the time we close the session on Wednesday, we should have more clarity. A break above the $1255 level will open the door way to the $1400 level longer-term. A daily close below the 50 day EMA opens the door to $1200.