Gold Price Forecast – Gold Markets Quiet On FridayGold markets went back and forth during the trading session on Friday as we continue to press a major downtrend line. Now the question is whether or not we will break out or simply drift into the holidays.
Gold markets did very little during the trading session on Friday, as we are sitting just above the 50 day EMA. The market has done almost nothing all week and that’s not a huge surprise considering that there isn’t much in the way of news flow to get the markets moving. That being said, the market is very likely to continue to press this major downtrend line, and if we can break above there then we will start taking a look at the $1500 level. All things being equal if we can break above the $1500 level it’s likely that the market will have more of a longer-term move to the upside, perhaps reaching towards the $1550 level.
Gold Analysis Video 23.12.19
To the downside, the market is likely to see the $1450 level offering support underneath, as it is an area that has been crucial longer-term and is of course the 38.2% Fibonacci retracement level. That being said, now we have to decide whether or not we are going to sit in this channel, or if we’re going to break down. I think this almost solely will go based upon the US/China trade situation and how that is going. We have had the so-called agreement to agree on Phase 1, but the details are very light to say the least. Ultimately, this is a market that is going to be highly sensitive to risk appetite. Beyond that, it will also be influenced by the US dollar which typically moves opposite of the commodity. The next couple of days may be very quiet this keep that in mind.
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