Gold Price Forecast – Gold markets pressing major resistance

Gold markets continue to be very noisy, reaching towards the crucial $1250 level. That’s an area that has been important more than once, and it does look like we are trying to break out above there. However, it is also an area where you would expect to see a lot of fight by the sellers.
Christopher Lewis
Gold daily chart, December 07, 2018

Gold markets rallied significantly during the trading session on Thursday, slamming into the $1250 level, an area that is massive resistance. However, if we break above there I think it simply signifies that we are going to go to the $1400 level above, which would be a continuation of the longer-term consolidation. I think at this point, it’s obvious that the fear out there is palpable, and therefore it will be interesting to see how goal behaves. Long thought of as a safety asset, quite frankly that’s not how it has acted as of late. That being said, I think that the $1250 level is the most important thing to pay attention to on the chart. If we can close above there on a daily close, then I think it’s an excellent buying opportunity. Keep in mind that today is the jobs number though, so I would wait until a daily close above there.

Gold Technical Analysis Video 07.12.18

Ultimately, if we obviously form a lot of resistance at the $1250 level and pulled back somewhat drastically in the short-term charts, I would be much more interested in shorting this market as this area has offered a lot of resistance. The 50 day EMA is starting to turn up though, so that is somewhat of a bullish sign. One thing that I would suggest is keeping your trade position somewhat light, as volatility is sure to be a fact of life over the next 24 hours.

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