Gold Price Forecast – Gold markets hover just below major resistance

Gold markets hovered a bit during the trading session on Wednesday, showing signs of resiliency. If we can break above the $1250 level, the market could go much higher, reaching towards the $1275 level. This is a market that looks like it is trying to wind up rather drastically.
Gold daily chart, December 06, 2018

Gold markets have pulled back a little bit from the $1250 level, an area of major support. The 50 day EMA is just below, which of course is a very bullish sign and it is starting to turn up just a bit. However, we need the market to close on a daily chart above the $1250 level to start buying, as it could open the market up to a longer-term move. The $1400 level above would be the target, and this would simply continue to stay within the consolidation that we have been in for some time. I believe at this point, the $1400 level will be far too resistive to get above, but it does make for a nice trading opportunity.

Gold Prices Video 06.12.18

Alternately, if we turn around and break below the $1200 level, that would be very negative for gold and could send it much lower. In fact, we could go all the way down to the $1000 level which of course is a major level of interest in both directions on longer-term charts. Ultimately, the market continues to be very choppy, but it certainly looks as if it is trying to break out. Keep in mind that the Americans were essentially off during the session as they were memorializing President Bush and most of the major firms were probably relatively inactive during the trading session. That being said, pay attention to the US dollar. If it does fall, the gold market should rally.

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